Crypto Marketplace Figure Markets Launches SEC-Registered Yield-Bearing Stablecoin as RWA Demand Soars

Digital asset market Figure Markets has launched YLDS, the primary yield-bearing stablecoin registered as a public safety providing with the U.S. Securities and Exchange Commission (SEC), the firm mentioned Thursday.

The YLDS stablecoin, issued via Figure Certificate Corporation, operates on the Provenance Blockchain and accrues curiosity each day, paid out each month in both U.S. {dollars} or YLDS tokens. It is backed by the identical securities as prime cash market funds and pays holders a return at an annual price of the Secured Overnight Financing Rate (SOFR) much less 50 foundation factors.

The token could be transferred peer-to-peer and exchanged for {dollars} or different stablecoins across the clock, with fiat off-ramps accessible throughout U.S. banking hours.

Stablecoins mushroomed to a $200 billion asset class and are more and more in style for funds and cross-border transactions. However, market-leading stablecoins like USDT and USDC do not typically pay out holders the yield earned on reserve belongings, predominantly U.S. Treasuries. That’s the place tokenized variations of money-market funds or funding methods like BlackRock’s BUIDL, Franklin Templeton’s BENJI or Ethena’s USDE enter the market: They are more and more used as collateral or to park on-chain money to earn a yield.

Read extra: Tokenized Treasuries: A Game-Changer for Collateral in Crypto Markets

Figure Markets is the digital asset arm of Figure Technologies, an organization co-founded by Mike Cagney, the previous CEO of SoFi. The agency has performed a key position in blockchain-based real-world asset (RWA) tokenization, processing over $41 billion in transactions and originating $11 billion in house fairness line of credit score utilizing the Provenance Blockchain. Figure filed paperwork to the SEC to launch a yield-bearing stablecoin providing in October 2023.

The firm expects YLDS to draw curiosity from builders seeking to combine secure, yield-bearing digital belongings into decentralized finance (DeFi) and fee purposes.

“We see tremendous applications for YLDS,” Figure Markets CEO Mike Cagney mentioned in an announcement. “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.”

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