Just over a year ago, cryptocurrency lending platform Figure Markets filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an interest-bearing stablecoin.
The firm's petition received approval from the agency on February 18, according to Figure Markets in a message posted on X, in which they explain that the new YLDS stablecoin is now available to its users, including US residents and banks.
This is a new type of stablecoin that is issued on the Provenance Blockchain platform by tokenizing “certificates of face value,” a type of fixed-income security that is not subject to change due to inflation or other market conditions. In this sense, it differs from other stablecoins, which are issued on networks such as Ethereum.
In this way, the new stablecoin will also differentiate itself from dominant stablecoins on the market, such as USDT or USDC, by being redeemable at 1 cent per certificate, instead of being pegged at 1 dollar each. This means that a payment of 1 dollar will require the transfer of 100 certificates.
Another relevant difference is that YLDS will pay an SOFR (Secured Overnight Financing Rate) interest rate of 3.85% per year, according to the company, which is the rate used by banks to set the price of derivatives and loans denominated in dollars. This interest will be accumulated daily and distributed monthly among the holders.
These payments are backed by reserves that include Treasury bonds, commercial paper, corporate debt and other assets.
The issuers' goal is for the stablecoin to be used as a payment tool, including across borders, with the intention of promoting the adoption of currencies issued on DeFi platforms in place of traditional finance, according to Figure Markets CEO Mike Cagney.
YLDS can be bought and sold on the Figure Markets platform using USD and other stablecoins. It can also be exchanged to fiat currency during US banking hours.
The stablecoin bears similarities to Solayer USD (sUSD), a stablecoin issued on the Solana network that is backed by tokenized US Treasury bills and earns 4.33% annual interest.
However, with the recent SEC ruling, YLDS becomes the first interest-bearing stablecoin to receive authorization from the US regulator.
The approval comes amid a changing dynamic in the regulation of cryptocurrencies in the United States, following the arrival of Donald Trump to the presidency of the country.
As reported by CriptoNoticias, the presidency is promoting efforts to create a favorable regulatory framework for the sector and Congress is moving forward with the approval of a new law for stablecoins. All this, while the SEC creates a working group to review its supervisory processes.
