SUI News Today: Democratizing Institutional Yields: Figure and Sui's SEC-Registered Token Redefines DeFi

Figure, a publicly traded technology company, has partnered with Sui to deploy its SEC-registered yield-bearing security token, YLDS, on the Sui blockchain. This initiative aims to enhance regulated DeFi infrastructure by providing users with direct access to yield-generating digital assets and fiat on- and off-ramps without relying on traditional crypto exchanges Figure Deploys SEC-Registered YLDS Token on Sui Blockchain for Yield Access^[1]. YLDS, issued by Figure Certificate Company (FCC), is backed by short-term U.S. Treasury securities and repurchase agreements, offering a yield of the Secured Overnight Financing Rate (SOFR) minus 35 basis points with daily accrual and monthly payments Sui Partners with Figure Technology Solutions to Deploy YLDS on Sui Blockchain^[2]. The token's SEC registration under the Investment Company Act of 1940 distinguishes it from unregulated stablecoins, ensuring compliance with federal securities laws Figure Markets Launched Industry First Yield-Bearing Stablecoin^[3].

The integration of YLDS on Sui will power DeepBook, the blockchain's native central limit order book and liquidity platform. YLDS will serve as a foundational yield layer for DeepBook's upcoming margin trading system, converting stablecoin holdings into yield-bearing assets to optimize capital efficiency SEC.gov | Re: The Use of YLDS as a Settlement Mechanism for Non-Security Crypto Transactions^[4]. This collaboration between Figure and Mysten Labs, the developer of Sui, marks a significant advancement in regulated DeFi, enabling institutions and individuals to access compliant, dynamic assets with the speed and security of the Sui network Sui Partners with Figure Technology Solutions to Deploy YLDS on Sui Blockchain^[5].

Figure's CEO, Mike Cagney, emphasized that the deployment of YLDS on Sui represents the first step in a broader initiative to expand SEC-compliant yield-bearing security tokens across multiple blockchain networks. He noted that the partnership aims to democratize access to institutional-grade financial products by eliminating traditional intermediaries FIGR Teams with Sui to Bring SEC-Registered Yield Tokens to DeFi^[6]. Evan Cheng, CEO of Mysten Labs, added that YLDS cements Sui's position as a premier platform for real-world asset (RWA) adoption and institutional-grade financial infrastructure Figure on the Heels of IPO, Deploys Flagship YLDS Security Token on Sui^[7].

The YLDS token's design includes a fiat on- and off-ramp feature, allowing Sui users to transact in USD directly without centralized exchanges. This functionality is expected to enhance liquidity and reduce counterparty risks while supporting 24/7 trading and instant peer-to-peer transfers Figure's YLDS Security Token Launches on Sui, Enhancing U.S. DeFi Liquidity^[8]. Additionally, Figure and Sui are exploring further integrations, including the potential use of the SUI token as collateral in Figure's lending platform SUI ETF Update: Mysten Labs Meets SEC on Blockchain Use^[9].

Regulatory clarity is a key differentiator for YLDS. As a SEC-registered debt security, YLDS operates under the oversight of traditional securities frameworks, aligning with the SEC's 2025 guidance on crypto asset securities. The guidance clarifies that tokens offering yield or profit expectations must be registered, reinforcing the compliance advantages of YLDS SEC’s 2025 Guidance: What Tokens Are (and Aren’t) Securities^[10].

The partnership also includes technical and operational benefits for Sui's ecosystem. DeepBook's margin trading system will leverage YLDS to generate yield from trading activity, borrowing fees, and liquidation events, further enhancing the platform's utility Enchanting, but Not Magical: A Statement on the Tokenization of Securities^[11]. Figure's counsel submitted letters to the SEC in 2025 regarding YLDS trading pairs as a settlement mechanism for non-security crypto assets, demonstrating proactive engagement with regulatory frameworks Figure Deploys SEC-Registered YLDS Token on Sui Blockchain for Yield Access^[12].

While YLDS is not FDIC-insured and carries risks such as credit and interest rate exposure, its structure as a face-amount certificate company provides transparency and regulatory alignment Sui Partners with Figure Technology Solutions to Deploy YLDS on Sui Blockchain^[13]. The token's integration into Sui's ecosystem underscores the growing convergence of blockchain technology and traditional financial systems, with potential implications for the broader adoption of RWA and DeFi products Figure's YLDS Security Token Launches on Sui, Enhancing U.S. DeFi Liquidity^[14].