Figure Markets recently unveiled YLDS, a yield-bearing stablecoin regulated by the US Securities and Exchange Commission (SEC). This innovative digital asset allows users to earn daily interest while maintaining liquidity. Created through Figure Markets’ subsidiary, Figure Certificate Company, YLDS represents a merging of traditional finance and blockchain technology, making it a significant development in the stablecoin space.
Operating on the Provenance Blockchain, YLDS differs from other stablecoins like Tether’s USDT by offering users a share of the reserve yields. The stablecoin generates yield from assets similar to prime money market funds, with interest rates based on the Secured Overnight Financing Rate (SOFR) minus 0.50%. This unique approach ensures users a reliable income stream, in addition to the stability associated with a regulated financial instrument.
YLDS supports peer-to-peer transfers and instant redemptions for US dollars or other stablecoins, along with access to fiat off-ramps during US banking hours for seamless conversion. Figure Markets positions YLDS as a connector between conventional financial systems and blockchain-based solutions, providing benefits such as exchange collateral, cross-border transactions, and enhanced payment networks.
CEO Mike Cagney sees YLDS as a catalyst for blockchain adoption in traditional finance, offering a glimpse into the future of stablecoin developments for both institutional and retail finance. With industry giants like BitGo, PayPal, and Ripple entering the stablecoin sector over the past year, the market capitalization of stablecoins has exceeded $230 billion, supporting global transactions and digital payments.
Stablecoins are crucial assets in the cryptocurrency ecosystem, offering price stability that shields traders from volatility and providing emerging markets with alternatives to local currencies. As institutions continue to expand into the stablecoin market, stablecoins are increasingly becoming a core component of global transactions and digital payment systems, fostering financial inclusion and innovation. The launch of YLDS by Figure Markets represents a significant step forward in this growing sector, setting the stage for further advancements in stablecoin technology and adoption.
