The U.S. Securities and Exchange Commission (SEC) has approved YLDS, the first interest-bearing stablecoin registered as a security. Developed by Figure Markets, YLDS offers stability and reliability under a fully regulated framework.
What Makes YLDS Different
Unlike popular stablecoins such as USDT and USDC, operating under regulatory uncertainty, YLDS is officially registered as a security with the SEC. This classification aligns it with U.S. financial regulations. Key features of YLDS include:
- Daily interest accrual at SOFR minus 0.50%. - Peer-to-peer transfers without intermediaries. - 24/7 trading and redemption in USD and other stablecoins, with fiat off-ramps during U.S. banking hours. - Self-custody—users control their YLDS tokens without relying on third-party custodians.
YLDS is backed by the same assets as prime money market funds, ensuring stability and yielding rates similar to traditional financial instruments.
A Major Shift in Stablecoin Regulation
Figure Markets CEO Mike Cagney described YLDS as a 'transformative play' in the financial sector. According to him, YLDS could reshape cross-border payments and traditional payment networks, enhancing TradFi and blockchain integration.
YLDS is part of Figure Markets’ broader push into tokenized real-world assets, with over $41 billion in transactions on the Provenance Blockchain.
The Future of Regulated Stablecoins
With the SEC's approval of YLDS, experts anticipate more yield-bearing stablecoins could emerge under similar frameworks. However, regulatory processes may take six to twelve months. U.S. policymakers are increasingly focused on stablecoins, while major institutions like PayPal and Ripple are expanding their involvement in this area.
The SEC's approval of YLDS marks a new phase in stablecoin development, providing clearer regulatory frameworks and potential for future financial innovations based on blockchain.
