Figure Markets Releases YLDS, a Yield-Bearing Stablecoin Built on Solana Despite the crypto markets having a mostly quiet February, institutions continue working away in the background to bring innovations to the blockchain industry.

Figure Markets has announced the release of a new yield-bearing stablecoin built atop Solana's network. The token, YLDS, will follow the Secured Overnight

Institutions are still working in the background to bring innovations to the blockchain industry, despite the crypto markets having a mostly quiet February.

Figure Markets has announced the launch of a new yield-bearing stablecoin on the Solana network. The token, called YLDS, will track the Secured Overnight Financing Rate minus 0.5%.

This gives crypto investors another stable way to generate income in the DeFi ecosystem.

The launch of YLDS comes as Solana has made a strong push into the stablecoin market over the past couple of years.

At the time of writing, Solana has about AU$15 billion in stablecoin market cap, which ranks the chain third behind Ethereum and Tron.

Figure Markets’ offering is notable because it has been approved by the Securities and Exchange Commission. The SEC has greenlit YLDS as a “registered public security,” which gives the asset a level of confidence that investors might not get with an unregulated alternative.

The APR of YLDS will be based on the Secured Overnight Finance Rate, which banks use for overnight dollar-denominated loans in the United States. With the current SOFR at 4.35%, this means that investors could earn up to 3.85% per year.

Interest will be accrued daily, and earnings will be paid out either in-kind or in USD on a monthly basis.

Compared to non-blockchain yield generation, YLDS has several advantages, including 24/7 finality, low fees and competitive earning rates. Notably, fiat off-ramps will be available even when US markets are closed, allowing for around-the-clock USD redemption.

The move by Figure Markets comes amid the popularity of BlackRock’s tokenised Treasury fund, BUIDL, and the growth of market players like Ondo Finance.