Sui and Figure Launch SEC-Registered YLDS Security Token for Yield Generation

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Figure Technology Solutions has announced the launch of YLDS, a regulated yield-bearing security token, on the Sui blockchain. This marks the first deployment of the token outside of the Provenance blockchain and highlights Sui’s growing appeal as a platform for innovative financial instruments. YLDS is designed as a debt security instrument backed by short-term U.S. Treasurys and repurchase agreements. It has been registered with the U.S. Securities and Exchange Commission, ensuring regulatory compliance. The token’s yield is calculated based on the Secured Overnight Financing Rate minus 35 basis points, with returns accruing daily and being paid out monthly.

The partnership between Figure and Sui aims to enhance the functionality of Sui’s DeepBook, the platform’s leading limit order book. By integrating YLDS, the platform seeks to provide yield generation for users while also supporting the development of upcoming margin trading features. According to the announcement, stablecoins on DeepBook will be automatically converted into YLDS, making it easier for users to participate in yield-generating activities without leaving the platform. This integration is expected to streamline the user experience and expand the utility of the Sui ecosystem.

Minting YLDS directly on the Sui blockchain is expected to provide users with a direct fiat on- and off-ramp, eliminating the need to rely on traditional crypto exchanges for USD access. This feature could significantly enhance the user experience by allowing seamless transitions between fiat and digital assets within the Sui ecosystem. The collaboration between Figure and Sui is also expected to continue with further integrations involving both YLDS and the SUI token. These future developments could include expanded use cases for the token, deeper integration with the Sui blockchain, and enhanced functionality for users seeking to generate yield or manage assets more efficiently.

Figure’s decision to launch YLDS on Sui underscores the platform’s potential as a viable infrastructure for regulated financial products. As a blockchain-native capital marketplace, Figure connects origination, funding, and secondary market activities, offering a comprehensive suite of services for investors and market participants. The launch of YLDS on Sui is seen as a strategic move to leverage the platform’s capabilities and expand its offerings to a global audience. By integrating YLDS into the Sui ecosystem, Figure is positioning itself at the intersection of traditional finance and blockchain innovation, setting a precedent for future collaborations in the space.

This development is also significant for the broader blockchain industry, as it demonstrates the increasing convergence of traditional financial instruments and decentralized technologies. The use of a regulated security token on a public blockchain highlights the potential for blockchain to support compliance-driven financial products while maintaining the benefits of decentralization and transparency. Sui’s role in this initiative reflects its growing reputation as a platform capable of supporting complex financial applications, further cementing its position in the evolving landscape of decentralized finance.

As the partnership between Figure and Sui progresses, it is likely to influence the direction of future developments in the blockchain space. The integration of regulated security tokens into decentralized platforms could pave the way for new financial products and services that combine the strengths of traditional finance with the efficiency and accessibility of blockchain technology. By setting a precedent for regulatory compliance in the blockchain industry, this collaboration may encourage other institutions to explore similar partnerships, ultimately expanding the scope of what is possible in the decentralized financial ecosystem.

Figure’s recent move to launch YLDS on Sui also aligns with the company’s broader goals of innovation and expansion. The company went public in September, marking one of the year's most notable crypto-related listings. Since then, it has continued to explore new opportunities in the blockchain space, with the Sui partnership representing a key milestone in its growth strategy. The collaboration not only strengthens Figure’s presence in the blockchain market but also reinforces Sui’s position as a leading platform for financial innovation. As both parties continue to work together, they are expected to introduce new features and functionalities that further enhance the value proposition of the Sui ecosystem.

Overall, the launch of YLDS on the Sui blockchain represents a significant development in the intersection of traditional finance and blockchain technology. By leveraging the strengths of both platforms, Figure and Sui are demonstrating the potential for blockchain to support a new generation of financial instruments that are both innovative and compliant. As the partnership evolves, it is likely to have a lasting impact on the blockchain industry, influencing the direction of future developments and shaping the way financial products are designed and delivered in the digital age.

Sui has made significant strides in the blockchain and decentralized finance (DeFi) sectors through strategic partnerships and innovations in tokenized financial instruments. One of the most notable developments is the collaboration between Sui and Figure Technology Solutions, a publicly traded company. The two entities have joined forces to deploy YLDS, a Security Token Offering (STO) and yield-bearing security token developed by Figure. This token is SEC-registered and backed by short-term U.S. Treasury securities and repurchase agreements involving treasuries. YLDS allows both individuals and institutions to engage with regulated financial products that provide yield, while maintaining compliance and transparency.

The integration of YLDS on Sui marks a pivotal step in bridging traditional finance with decentralized infrastructure. By offering a regulated, yield-bearing token that operates within the Sui ecosystem, the partnership aims to expand access to financial services that are typically reserved for institutional investors. YLDS provides daily accrual and monthly payments, ensuring a seamless experience for users. The token supports instant peer-to-peer transfers and 24/7 liquidity, enabling a new model of digital asset transactions that is both efficient and compliant.

Figure’s deployment of YLDS is the result of a broader strategic focus to leverage blockchain technology for financial innovation. This effort is supported by Figure’s recent Nasdaq IPO, with the company now trading under the ticker FIGR. By leveraging Sui’s fast, secure, and scalable blockchain, Figure is positioned to offer next-generation financial tools that meet the evolving needs of the market. The partnership underscores Sui’s position as a leader in the integration of real-world assets (RWA) into the blockchain space, creating a foundation for institutional-grade financial infrastructure.

From Sui’s perspective, the introduction of YLDS represents a major advancement in regulated DeFi. According to Evan Cheng, Co-Founder and CEO of Mysten Labs, the deployment of YLDS on Sui enables institutions to access dynamic and compliant assets with the speed and security that the platform is known for. The token is expected to contribute to the broader adoption of DeFi by providing a regulated entry point into digital asset ecosystems. This is especially relevant in the context of growing regulatory scrutiny and the need for transparent financial products.

Additionally, the partnership is set to support Sui’s DeepBook margin trading infrastructure, which is a key component of the Sui Stack. DeepBook is the largest trading venue for SUI, and the integration of YLDS will enhance its functionality by serving as a foundational yield layer. The stablecoin will allow users to swap into YLDS natively on the Sui network, optimizing capital efficiency and offering a new layer of financial utility. This initiative is expected to drive further innovation in onchain financial products and deepen the integration of real-world assets within the Sui ecosystem.

Looking ahead, the collaboration between Figure and Sui is expected to expand beyond the deployment of YLDS. Both parties are exploring potential integrations that could include the use of the SUI token as collateral within Figure’s lending platform. This would open new avenues for the use of SUI as a utility token and reinforce its role in the broader financial infrastructure. By working together, the two companies are setting a precedent for future partnerships that combine institutional-grade finance with blockchain capabilities.

The strategic alignment of Sui and Figure highlights the growing convergence between traditional financial systems and decentralized technologies. As the DeFi landscape continues to evolve, Sui’s ability to support SEC-registered security tokens and real-world asset integration positions it as a leading platform for the next generation of digital financial services. This development not only strengthens Sui’s role in the market but also paves the way for more compliant and accessible financial products that can appeal to both retail and institutional investors.