Figure Markets Deploys YLDS
Figure Markets, a digital asset exchange, has deployed YLDS, the first SEC-registered yield-bearing stablecoin. This is a significant milestone in the cryptocurrency industry, bridging traditional financial infrastructure and blockchain-based assets.
The Figure Certificate Corporation created stablecoin functionality on the Provenance Blockchain, with its owners entitled to an annual return of the Secured Overnight Financing Rate (SOFR) minus 50 basis points. The YLDS differs from other stablecoins in that it acts as a public security, allowing compliance with U.S. finance regulations.
Yield and Liquidity Features
YLDS offers daily accrual of interest as well as monthly distributions through either U.S. dollars or YLDS tokens.
It is backed by similar securities held by prime money market funds, therefore it is a more structured and transparent stablecoin solution. YLDS also offers:
- Peer-to-peer transfer for ease of transactions
- U.S. dollar or other stablecoin redemptions
- Fiat off-ramps within the U.S. banking hours to provide added liquidity
- Market Growth and Competitive Advantage for stablecoins
The stablecoin market has grown into a $200 billion asset class being widely used for payments and cross-border settlements. Leading stablecoins such as USDT (Tether) and USDC, however, do not distribute yields to investors, despite being collateralized with U.S. Treasuries.
This gap has driven the emergence of tokenized money-market funds and yield-paying digital assets such as:
- BlackRock’s
- BUIDLFranklin
- Templeton’s BENJI
- Ethena’s USDE
YLDS enters this space with a regulated alternative, and for the first time, offers security and yield together.
Figure Markets and Provenance Blockchain
Figure Markets and Provenance Blockchain
Figure Markets is the business unit of Figure Technologies, which was co-founded by former SoFi CEO Mike Cagney. The firm has been a pioneer in blockchain-based financial services, having executed over $41 billion in transactions and originated $11 billion of home equity lines of credit.
Regulatory Compliance and Future Adoption
Regulatory Compliance and Future Adoption
Figure Markets filed for SEC approval in October 2023, making YLDS a compliant stablecoin option.
Cagney sees YLDS gaining traction in DeFi applications, cross-border payments, and collateralization:
“Exchange collateral, cross-border remittances, and payment rails are near-term opportunities, but this is only the start of a broader migration of traditional finance to blockchain.”
Through its SEC registration, yield distribution, and blockchain implementation, YLDS may reshape stablecoin usability in regulated economies.
