Figure Markets Introduces the First Yield-Bearing Stablecoin Registered with SEC

Figure Markets Launches the Industry's First Yield-Bearing Stablecoin

Figure Markets, a prominent name in the realm of decentralized finance, has taken a groundbreaking step by launching the first-ever yield-bearing stablecoin registered with the Securities and Exchange Commission (SEC). This innovative digital currency, known as YLDS, allows users to earn interest through a public security that operates on the Provenance Blockchain, setting a precedent for financial applications anchored in public blockchains.

What Sets YLDS Apart?

YLDS is not just another stablecoin; it represents a transformative shift in the way digital assets are perceived and utilized. Unlike traditional stablecoins, which may only serve as a medium of exchange, YLDS enables holders to accrue interest on their assets while still maintaining the flexibility of peer-to-peer transactions. The coin is backed by the same types of securities that are typically held in prime money market funds, ensuring a level of security and reliability for investors.

Furthermore, YLDS is structured as a fixed-price security that accrues interest daily and pays out monthly. The interest rate is defined as the Secured Overnight Financing Rate (SOFR) minus 0.50%, making it an attractive option for those looking to diversify their investment portfolios or manage liquidity more effectively. Investors can engage with YLDS using US dollars or other stablecoins, thereby offering various pathways for investment and liquidity.

A Catalyst for Change

Mike Cagney, CEO of Figure Markets, views YLDS not merely as a financial product but as a catalyst that could herald a larger migration of traditional finance (TradFi) toward blockchain technology. “We see tremendous applications for YLDS,” he stated, referencing potential use cases that include exchange collateral, cross-border remittances, and innovative payment rails. This vision underscores the belief that YLDS could reshape financial interactions both in the short term and for the long haul.

Additionally, with the growing emphasis on self-custody, YLDS employs Figure Markets' proprietary wallets, allowing users to maintain complete control over their digital assets without having to rely on third-party intermediaries. This represents a paradigm shift in asset management, aligning with the broader principles of decentralized finance.

Supporting The Ecosystem

The launch of YLDS comes at a time when Figure Markets is already a significant player in the real-world asset (RWA) space. The company has reported over $41 billion in RWA transactions on the Provenance Blockchain, showcasing its established credibility and experience in the sector. As part of this ecosystem, YLDS is anticipated to contribute substantially to the total locked value on-chain, which currently exceeds $13 billion.

June Ou, the Interim Executive Director of the Provenance Blockchain Foundation, expressed excitement about the integration of YLDS into their ecosystem. She anticipates that it will spark significant interest from third-party developers eager to utilize YLDS for decentralized finance applications, payments, and beyond. This collaboration highlights the mutual benefit both Figure Markets and Provenance Blockchain stand to gain, especially regarding the development of cross-chain applications.

Looking Ahead

With the roll-out of YLDS, starting today, individual and institutional investors alike can explore new opportunities via Figure Markets' platform. As the financial landscape continues to evolve, YLDS embodies the forward-thinking approaches needed to attract users who value both interest earning potential and the flexibility of blockchain technology.

By placing power directly in the hands of asset holders, Figure Markets aims to democratize finance and eliminate the impact of traditional intermediaries that have long dominated the financial sector. For further details about YLDS and to begin trading, interested parties can visit Figure Markets.

In conclusion, the launch of YLDS is a pioneering endeavor that not only signifies progress in decentralized finance but also heralds a new era of investment possibilities. As the world grows increasingly digital, innovations like YLDS are sure to play a pivotal role in shaping the future of financial transactions.