Market News

SEC Ushers in New Era for US Stablecoins with Yield-Bearing YLDS Approval

The US Securities and Exchange Commission (SEC) has officially approved the YLDS stablecoin, marking it as the first yield-bearing stablecoin sanctioned in the United States. YLDS offers an Annual Percentage Rate (APR) of 3.85%, trading continuously on the Figure Markets platform and allowing monthly payouts in either USD or YLDS tokens. This rate notably surpasses the returns of traditional US Treasury bonds, positioning YLDS as an appealing option for investors seeking stable yet lucrative assets. The stablecoin's yield is pegged to the Secured Overnight Financing Rate (SOFR), less a 0.50% spread, ensuring that returns adjust with economic fluctuations and providing a dependable income stream. Additionally, YLDS is available for trading 24/7, catering to the global and round-the-clock nature of cryptocurrency markets while also accommodating conversions to fiat during standard banking hours. By achieving compliance with US securities law, Figure Markets sets a precedent in integrating blockchain-based financial instruments within the regulated financial landscape. This initiative not only enhances the credibility of stablecoins but also propels the sector forward, reflecting an official endorsement of digital assets that combine traditional stability with innovative financial mechanisms.