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 the ability to earn daily interest while operating within a regulated framework.
Features of YLDS
Unlike popular stablecoins such as USDT and USDC, which operate in regulatory uncertainty, YLDS is officially registered as a security with the SEC, ensuring compliance with U.S. financial regulations. Key features of YLDS include:
— Daily Interest Accrual – Pays interest at SOFR minus 0.50%, similar to prime money market funds. — Peer-to-Peer Transfers – Users can send YLDS directly without intermediaries. — 24/7 Trading & Redemption – Available for transactions in USD and other stablecoins anytime. — Self-Custody – Users control their YLDS tokens without relying on third-party custodians.
Unlike algorithmic or crypto-backed stablecoins, YLDS is backed by the same assets held by prime money market funds. This ensures stability and reliability while offering a yield that mirrors traditional financial instruments.
A Major Shift in Stablecoin Regulation
Figure Markets CEO Mike Cagney called YLDS a 'transformative play' in the financial sector. According to Cagney, YLDS could reshape cross-border payments, exchange collateral, and traditional payment networks, further accelerating the integration of traditional finance and blockchain.
YLDS is part of Figure Markets’ broader push into tokenized real-world assets. The company has facilitated over $41 billion in transactions on the Provenance Blockchain, with $13 billion in total locked value (TVL).
The SEC’s approval process for YLDS began over a year ago, signaling a potential shift in stablecoin regulations. As stablecoins grow in popularity—worth over $225 billion—regulatory clarity becomes increasingly important.
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 paying closer attention to stablecoins. The Trump administration’s recent executive order on digital assets highlighted stablecoin growth, while Congress continues working on a formal regulatory framework.
Major institutions like PayPal, BitGo, and Ripple have also expanded into stablecoins, signaling further institutional adoption of blockchain-based financial instruments.
The SEC’s approval of YLDS opens new horizons for the regulation and use of yield-bearing stablecoins. It marks an important step in integrating traditional finance with blockchain technology, promising a more sustainable and clear future for stablecoins.
