Sui is partnering with Figure Certificate Company (FCC), a subsidiary of Figure Technology Solutions (NASDAQ:FIGR), in order to deploy YLDS, the SEC-registered yield-bearing security, natively on Sui, thus expanding access to regulated financial products within the Sui ecosystem. This update comes after Figure’s recent Nasdaq IPO, marking its focus on Sui.
YLDS is described as a SEC-registered debt security, which is said to be backed by short-term treasury securities as well as certain repurchase agreements involving treasury securities, “yielding SOFR minus 35 basis points with daily accrual and monthly payments.”
Available to individuals and institutions, YLDS reportedly allows for instant peer-to-peer transfers and 24/7 liquidity, offering a more frictionless, compliant way for “digital dollars to move and generate yield.”
Holding YLDS is also said to have the secondary benefit of enabling individuals and institutions to access “fiat rails and yield-generating digital dollars with instant peer-to-peer transfers and 24/7 liquidity.”
The partnership is the latest in a series of agreements that is bringing Sui to the U.S.-based real-world asset (RWA) and DeFi ecosystems, introducing compliant, “scalable infrastructure that supports the next generation of digital financial services.”
Mike Cagney, co-founder and Executive Chairman of Figure said that they are pleased to take this first step with Sui and hopefully eliminate traditional intermediaries in order “to level the playing field and democratize access to institutional-grade financial products.”
Evan Cheng, Co-Founder & CEO of Mysten Labs, the “original” contributor to Sui explained that by bringing together regulated, yield-bearing security tokens with composability, YLDS cements Sui as the platform “for real-world asset adoption and institutional-grade financial infrastructure.”
Figure says that it brings experience building compliant financial technology. Its YLDS security token is meant to meet the standards of public reporting companies while introducing “yield-bearing functionality for onchain users.”
YLDS opens up various DeFi opportunities by delivering yield from securitized, real-world financial instruments, with certificates issued natively onchain to enable instant liquidity and transferability.
As explained in the update, native issuance on Sui means that developers, institutions, and users can tap into a regulated stablecoin with utility built from the ground up for “composability and scalability.” It will offer a direct fiat on- and off-ramp for Sui users, allowing access to USD without depending on more traditional types of crypto exchanges.
The partnership centers on Sui’s liquidity layer, DeepBook, which is described as a primitive in the Sui Stack and the ecosystem’s venue for SUI trading.
DeepBook’s upcoming margin trading system will reportedly aim to “utilize an isolated stablecoin lending pool that generates yield from trading activity, borrowing fees, and liquidation events.”
YLDS will serve as a foundational yield layer, where stablecoins will “swap into YLDS natively on Sui, to maximize capital efficiency.”
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