"Figure Launches SEC-Registered Stablecoin YLDS, Offering SOFR Minus 0.50% Interest"

The crypto landscape is evolving with the introduction of a new stablecoin, YLDS, by Figure Markets. This is the first SEC-registered public security USD stablecoin native to a blockchain, offering an interest rate of secured overnight financing rate (SOFR) minus 0.50%. Users can transfer these securities peer-to-peer via the Provenance blockchain using Figure Markets' self-custody wallets.

Figure CEO Mike Cagney had previously hinted at this development, following a $60 million raise in 2023. The launch comes a month after stablecoin issuer Circle acquired Hashnote, a company that created the largest tokenized money market fund. Circle CEO Jeremy Allaire noted the demand for market participants using yield-bearing collateral while also being able to easily convert it to tokenized cash (USDC).

Stablecoins, often referred to as crypto's killer app and a payments space disruptor, have a market capitalization of nearly $222 billion, with roughly 149 million stablecoin holders. Onchain real-world assets (RWAs) amount to about $17.5 billion. However, the lack of consensus about the tools to bring money natively onchain hinders the development of digital bonds and RWA tokenization.

S&P Global Ratings expects regulation to bolster stablecoin adoption, forecasting a transition from unregulated to regulated stablecoins. Figure's new stablecoin, YLDS, could be a step in this direction, offering a regulated, yield-bearing stablecoin option.