Figure Markets, a platform for decentralized finance (DeFi), has recently launched the first interest-bearing stablecoin native to a public blockchain registered with the Securities and Exchange Commission.
YLDS, described as a public security offered through Figure Markets’ wholly owned subsidiary, Figure Certificate Company, is “a fixed-price, daily accrual public security native to the Provenance Blockchain.” The company explains that YLDS can be transferred peer-to-peer and is “backed by the same securities that prime money market funds hold.” It marks a shift in financial applications built on a public blockchain, offering holders the “ability to earn interest, transfer securities peer-to-peer, and transact 24×7 while utilizing Figure Markets’s self-custody wallets, “giving users control of the tokens without relying on third parties.”
As stated in a blog post, individuals and institutions may purchase YLDS through Figure Markets.
Figure Markets – working with its sister company Figure Technology Solutions – has been a key player in the real-world asset (RWA) space on blockchain, “supporting over $41B in RWA transactions on the Provenance Blockchain, with over $13B in RWA total locked value on-chain. YLDS will add to that number.”
June Ou, Interim Executive Director of the Provenance Blockchain Foundation, said:
“We’re excited to support YLDS on Provenance Blockchain. We expect, and will support, significant third-party developer interest to use YLDS and its fiat rails in DeFi, payments, and other applications built on Provenance Blockchain. We will also be integral in wrapping YLDS for applications on other L1 blockchains.”
YLDS pays an interest rate “of SOFR minus 0.50%. Interest is accrued daily and paid monthly in USD or YLDS.”
Holders can buy/sell YLDS “using USD and other stablecoins 24×7 on Figure Markets, and can off-ramp to fiat during US banking hours.”
As noted in the update, Figure Markets is democratizing finance through blockchain.
The company claims to be focused on building the exchange “for everything—a decentralized custody marketplace for crypto, stocks, bonds, credit, and more.”
By offering leverage, margin trading, and liquidity, Figure Markets provides members with “borrowing options and unique investment opportunities.”
With its “decentralized” custody exchange, they aim to “put members in control of their own assets and data, disintermediating legacy brokers, exchanges and lenders.”
As noted in the announcement, investments are “not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.”
Registration with the SEC means that the SEC has “made the offering effective.”
As clarified in the update, the SEC has “not approved or disapproved these securities, nor have they passed upon the accuracy or adequacy of this offering.”