Figure Markets has launched YLDS, a yield-bearing stablecoin registered with the US Securities and Exchange Commission (SEC).
According to a Feb. 20 statement, the stablecoin enables users to earn daily interest while maintaining liquidity. It was introduced through the Figure Markets subsidiary, Figure Certificate Company.
This marks a significant development in the stablecoin space, merging traditional finance with blockchain technology.
Yield-bearing stablecoin
YLDS operates as a fixed-price digital asset on the Provenance Blockchain. Unlike leading stablecoins like Tether’s USDT, which do not share reserve yields with holders, YLDS provides an interest-bearing option within a regulated framework.
The yield generated by YLDS comes from assets similar to prime money market funds. Its interest rate aligns with the Secured Overnight Financing Rate (SOFR) minus 0.50%. This approach provides users with a reliable income stream while ensuring the stability expected from a regulated financial instrument.
YLDS supports peer-to-peer transfers and allows instant redemptions for US dollars or other stablecoins. Users can also access fiat off-ramps during US banking hours, making conversion seamless.
With these features, Figure Markets positions YLDS as a bridge between traditional financial systems and blockchain-based solutions.
Mike Cagney, CEO of Figure Markets, emphasized YLDS’s potential in exchange collateral, cross-border transactions, and payment networks. He believes this innovation could accelerate the adoption of blockchain infrastructure within traditional finance.
Meanwhile, this innovation could set a precedent for future stablecoin developments in both institutional and retail finance
Growing stablecoin ecosystem
Stablecoins play an essential role in the crypto ecosystem. These assets offer price stability, shielding traders from volatility while providing emerging markets a viable alternative to local currencies.
Over the past year, major institutions like BitGo, PayPal, and Ripple have expanded into this growing sector.
As a result, the stablecoin market capitalization has surpassed $230 billion, supporting global transactions and digital payments.
