- SEC approves Figure Markets’ YLDS, the first yield-bearing stablecoin in the U.S.
- YLDS offers a 3.85% yield, marking a significant shift in blockchain financial products.
- Figure Markets’ YLDS is backed by prime money market securities, ensuring stability.
The U.S. Securities and Exchange Commission (SEC) granted Figure Markets permission to launch the first yield-bearing stablecoin into the U.S. market. The approval allows users to get interest payments on their assets holdings while establishing the stablecoin sector as a legitimate marketplace. The agency confirmed through official filings on February 18th, 2025 that Figure Markets received approval to issue its US dollar-pegged YLDS stablecoin.
The stablecoin YLDS offers a yield of 3.85% and it received official security status from the SEC. Figure Markets CEO Mike Cagney confirmed the significance of this recent development. According to Cagney, YLDS presents itself as a banking system alternative with users maintaining control over their stablecoins while earning interest and using them for payments. The change demonstrates this rising blockchain trend of DeFi which develops finance services through autonomous financial tools.
SEC Regulation and the Growing Stablecoin Market
YLDS receives regulatory authorization when stablecoin regulations are gaining increased attention from regulatory bodies. Lawmakers in the U.S. have started working on essential regulatory issues that affect stablecoins by seeking enhanced transparency and integration with traditional financial systems. The approval of YLDS presents an industry-standard case for crypto companies offering interest-bearing stablecoins.
The global adoption of stablecoins continues to rise, and various regional governments have started implementing rules for these digital assets. The European Union, Hong Kong and Singapore have developed complete regulatory systems for stablecoins. Despite slower implementation the U.S. appears ready to shift its regulatory stance after approving YLDS.
Additional stablecoin projects are adopting approaches similar to the ones already established in the market. Tether co-founder Reeve Collins is working on the decentralized stablecoin project Pi Protocol, which will offer interest to users later this year. The growth of yield-bearing stablecoins will accelerate as businesses receive approval to introduce such products.
Future Potential of Yield-Bearing Stablecoins
YLDS introduces substantial changes to the current process of providing financial products through public blockchain platforms. Users can generate interest income through this yield-bearing stablecoin as they simultaneously engage in peer-to-peer asset transfers. The new model enables opportunities to explore international payments alongside collateral asset transfers and worldwide payment systems.
Figure Markets provides users with self-custody wallets, ensuring complete control of their assets so they do not need to depend on external intermediaries. YLDS functions on the Provenance Blockchain through securities that match those used by prime money market funds, providing stability while ensuring security.