Figure Markets Launches First Yield-Bearing Stablecoin YLDS Granted SEC Approval

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 U.S. Securities and Exchange Commission (SEC) has granted Figure Markets the green light to launch the first yield-bearing stablecoin in the United States. This approval will allow users to earn interest on their assets while solidifying the stablecoin sector as a legitimate marketplace.

On February 18th, 2025, the agency confirmed through official filings that Figure Markets has received approval to issue its US dollar-pegged YLDS stablecoin. With a yield of 3.85%, the stablecoin will be classified as a security by the SEC.

Figure Markets CEO Mike Cagney highlighted the significance of this recent development. According to Cagney, YLDS serves as an alternative to the banking system, allowing users to maintain control over their stablecoins while earning interest and utilizing them for payments. This shift aligns with the rising trend of decentralized finance (DeFi) in the blockchain realm, aiming to create financial services through autonomous tools.

SEC Regulation and the Growing Stablecoin Market

The regulatory authorization of YLDS comes at a time when stablecoin regulation is gaining increasing attention from regulatory bodies. In the U.S., lawmakers have begun addressing essential regulatory concerns that affect stablecoins, aiming to achieve greater transparency and integration with traditional financial systems.

This approval sets a precedent for crypto companies offering interest-bearing stablecoins in the country. As the world continues to adopt stablecoins, several regional governments have implemented rules for these digital assets. The European Union, Hong Kong, and Singapore have established comprehensive regulatory frameworks for stablecoins. While the U.S. has been slower to implement such measures, the approval of YLDS signals a shift in this approach.

Other stablecoin projects are also adopting approaches similar to those already established in the market. Tether co-founder Reeve Collins is working on a decentralized stablecoin project called Pi Protocol, which is set to offer interest to users later this year. As more businesses receive approval to introduce such products, the growth of yield-bearing stablecoins is poised to accelerate.

Future Potential of Yield-Bearing Stablecoins

The introduction of YLDS through Figure Markets brings about significant changes to the way financial products are offered on public blockchain platforms. With this yield-bearing stablecoin, users can generate interest income while simultaneously engaging in peer-to-peer asset transfers. This new model opens up avenues to explore international payments, collateral asset transfers, and participation in worldwide payment systems.

Figure Markets provides users with self-custody wallets, ensuring complete control over their assets without relying on external intermediaries. Operating on the Provenance Blockchain, YLDS is backed by securities that align with those used by prime money market funds, ensuring stability and maintaining a secure foundation.