The SEC’s green light for the YLDS stablecoin could mark a major shift in the U.S. approach to digital assets
The U.S. Securities and Exchange Commission (SEC) has approved the first-ever interest-bearing stablecoin registered as a security, signaling a potential transformation in digital finance.
Pegged to the U.S. dollar, Figure Markets’ YLDS stablecoin offers a 3.85% yield, with no staking or lockups, 24/7 trading availability, and providing users with passive income while maintaining liquidity.
“Introducing the first-ever SEC-regulated, yield-bearing stablecoin: $YLDS,” Figure Markets posted on X shortly after the approval.
In the same X thread, Figure Markets CEO Mike Cagney highlighted the potential impact of $YLDS, citing “tremendous applications” for the stablecoin.
“Exchange collateral, cross-border remit, and payment rails are some of the immediate opportunities. But we see this as a catalyst to a much larger migration of tradfi to blockchain”.
Built on the Provenance Blockchain and issued by Figure Certificate Company, a subsidiary of Figure Markets, the stablecoin $YDLS aims to serve as a compliant alternative to offshore stablecoins that exist in regulatory gray areas.
The SEC’s approval comes at a time of increasing regulatory focus on stablecoins. On February 5, Republican lawmakers introduced a draft of the STABLE Act, which seeks to establish clear rules for stablecoin issuers.
Former CFTC Chair Timothy Massad supported provisions such as full reserves and issuer restrictions but argued the bill lacked clarity in key areas.
“The STABLE Act has many features I support, such as full reserves for tokens, limitations on the activities of an issuer, but there are many areas where it is deficient,” Massad stated at a subcommittee hearing held on February 11 in Washington, DC.
As the SEC approves its first yield-bearing stablecoin, industry experts have questioned whether this marks the beginning of a broader shift in the U.S. approach to digital assets.
Figure Markets’Cagney assured Fortune Crypto that the application was filed with the SEC more than a year ago.
Cagney also shared his opinion on this topic, raising a question that will give many people pause for thought:
“If I can hold this [stablecoin], if I can self-custody this, if it pays me interest, and I can actually use it to transact, what do I need a bank for?”
