Figure Markets Launches YLDS, the First Yield-Bearing Stablecoin Registered with the SEC

Figure Markets, the digital asset marketplace, has launched YLDS, the first yield-bearing stablecoin registered with the U.S. Securities and Exchange Commission (SEC). This milestone marks a significant development in the digital asset space, as YLDS offers a new way for investors to earn yields on their digital assets.

About YLDS

YLDS is a stablecoin issued through Figure Certificate Corporation, operating on the Provenance Blockchain. It accrues interest daily, paid out every month in U.S. dollars or YLDS tokens. The token is backed by the same securities as prime money market funds and pays holders a return at an annual rate of the Secured Overnight Financing Rate (SOFR) less 50 basis points.

The token can be transferred peer-to-peer and exchanged for dollars or other stablecoins around the clock, with fiat off-ramps available during U.S. banking hours.

Market Context

Stablecoins have mushroomed to a $200 billion asset class and are increasingly popular for payments and cross-border transactions. However, market-leading stablecoins like USDT and USDC don’t generally pay out holders the yield earned on reserve assets, predominantly U.S. Treasuries. This is where tokenized versions of money-market funds or investment strategies like BlackRock’s BUIDL, Franklin Templeton’s BENJI, or Ethena’s USDE enter the market: they are increasingly used as collateral or to park on-chain cash to earn a yield.

Figure Markets and YLDS

Figure Markets is the digital asset arm of Figure Technologies, a company co-founded by Mike Cagney, the former CEO of SoFi. The firm has played a key role in blockchain-based real-world asset (RWA) tokenization, processing over $41 billion in transactions and originating $11 billion in home equity line of credit using the Provenance Blockchain. Figure filed paperwork with the SEC to launch a yield-bearing stablecoin offering in October 2023.

The company expects YLDS to attract interest from developers looking to integrate stable, yield-bearing digital assets into decentralized finance (DeFi) and payment applications.

“We see tremendous applications for YLDS,” Figure Markets CEO Mike Cagney said in a statement. “Exchange collateral, cross-border remittances, and payment rails are immediate opportunities, but this is just the beginning of a larger shift of traditional finance to blockchain.”

Conclusion

The launch of YLDS marks a significant milestone in the digital asset space, offering a new way for investors to earn yields on their digital assets. As the market continues to evolve, it will be exciting to see how YLDS and other yield-bearing stablecoins shape the future of decentralized finance and payments.

FAQs

Q: What is YLDS?
A: YLDS is a yield-bearing stablecoin issued through Figure Certificate Corporation, operating on the Provenance Blockchain.

Q: How does YLDS accrue interest?
A: YLDS accrues interest daily, paid out every month in U.S. dollars or YLDS tokens.

Q: What is the annual return on YLDS?
A: The annual return on YLDS is the Secured Overnight Financing Rate (SOFR) less 50 basis points.

Q: Can YLDS be transferred or exchanged?
A: Yes, YLDS can be transferred peer-to-peer and exchanged for dollars or other stablecoins around the clock, with fiat off-ramps available during U.S. banking hours.

Q: Who is Figure Markets?
A: Figure Markets is the digital asset arm of Figure Technologies, a company co-founded by Mike Cagney, the former CEO of SoFi.

Q: What is the purpose of YLDS?
A: The purpose of YLDS is to offer a new way for investors to earn yields on their digital assets, with potential applications in decentralized finance (DeFi) and payment applications.