The U.S. Securities and Exchange Commission (SEC) has approved YLDS, the first yield-bearing stablecoin registered as a security. Developed by Figure Markets, YLDS offers users a stable income within a fully regulated framework.
How YLDS Differs from Other Stablecoins
Unlike popular stablecoins such as USDT (Tether) and USDC (USD Coin), which operate in regulatory uncertainty, YLDS is officially registered as a security with the SEC. This classification aligns it with stocks and bonds, ensuring compliance with U.S. financial regulations. Features include daily interest accrual, peer-to-peer transfers, 24/7 trading, and self-custody of YLDS tokens.
A New Phase in Stablecoin Regulation
Figure Markets CEO Mike Cagney called YLDS a 'transformative play' in the financial sector. YLDS could reshape cross-border payments and accelerate the integration of traditional finance and blockchain. The company is also pushing into tokenized real-world assets and has processed over $41 billion in transactions on the Provenance Blockchain.
The Future of Regulated Stablecoins
Experts anticipate more yield-bearing stablecoins to emerge under similar frameworks as YLDS. However, regulatory approvals may take six to twelve months for new entrants. Meanwhile, the growth of stablecoins is drawing increased attention from lawmakers and major institutions like PayPal and Ripple.
The approval of YLDS as a security marks a shift in stablecoin regulation, emphasizing the importance of regulatory clarity in an era of growing stablecoin popularity. Regulated stablecoins like YLDS could set a new standard, driving further adoption of blockchain technology in the financial sector.
