The U.S. Securities and Exchange Commission (SEC) has recently approved YLDS, the first yield-bearing stablecoin registered as a security. Developed by Figure Markets, YLDS offers users a stablecoin that accrues daily interest while operating within a fully regulated framework.
What Makes YLDS Different
Unlike popular stablecoins such as USDT and USDC, which operate in regulatory uncertainty, YLDS is officially registered as a security with the SEC. This classification ensures compliance with U.S. financial regulations. YLDS accrues interest daily at SOFR minus 0.50%, similar to prime money market funds. The stablecoin supports peer-to-peer transfers without intermediaries, 24/7 trading and redemption, and self-custody of tokens. Unlike algorithmic stablecoins, YLDS is backed by assets similar to those held by prime money market funds, ensuring reliability.
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, exchange collateral, and traditional payment networks, further accelerating the integration of TradFi and blockchain. YLDS is part of Figure Markets' broader push into tokenized real-world assets. The company has facilitated over $41 billion in RWA transactions on the Provenance Blockchain.
The Future of Regulated Stablecoins
With the SEC's approval of YLDS, experts anticipate that more yield-bearing stablecoins could emerge under similar frameworks. However, regulatory approvals may take six to twelve months for new entrants. Meanwhile, U.S. policymakers are increasingly paying attention to stablecoins. The Trump administration's executive order on digital assets highlighted stablecoin growth, while Congress continues working on a formal regulatory framework.
The SEC's approval of YLDS signals possible changes in the regulation of such assets in the future. This creates an important precedent for other yield-bearing stablecoins, which may soon appear. As Figure Markets advances into tokenized assets, it continues to draw attention to the integration of blockchain into traditional finance.
