SEC Approves First Interest-Bearing Stablecoin in US History

Figure Markets Secures SEC Approval for First US Yield-Bearing Stablecoin

  • First SEC-approved interest-bearing stablecoin in the US financial market.
  • YLDS stablecoin will offer a 0.5% yield to holders while maintaining dollar peg.
  • Figure Markets secured approval after more than a year-long application process.
  • The stablecoin is officially registered as a security with the SEC.
  • This approval signals SEC’s evolving stance toward regulated stablecoin innovation.

In a groundbreaking development for the digital asset industry, Figure Markets has secured regulatory approval for the first yield-bearing stablecoin in the United States, marking a significant shift in the SEC’s approach toward innovative cryptocurrency products.

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The new stablecoin, designated as YLDS, represents a hybrid financial instrument that combines the stability of dollar-pegged assets with interest-bearing capabilities. According to SEC filings published February 18, the stablecoin will provide holders with a 0.5% yield, while maintaining its value pegged to the US dollar.

Mike Cagney, CEO of Figure Markets, revealed in an interview with Fortune that the approval process extended beyond twelve months, highlighting the thorough regulatory scrutiny applied to this novel financial product.

This regulatory milestone arrives amid growing institutional interest in stablecoins, which are digital assets designed to maintain a stable value relative to traditional currencies. The approval of YLDS as a registered security creates a precedent for future yield-bearing stablecoin products, potentially opening new avenues for regulated crypto yield generation.

The introduction of a regulated, yield-bearing stablecoin addresses a crucial market need for investors seeking stable returns within the cryptocurrency ecosystem while maintaining compliance with US securities laws. This development could bridge the gap between traditional fixed-income products and digital assets, potentially attracting more institutional investors to the space.

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