365Crypto
Figure Markets Launches Yield-Bearing Stablecoin
The U.S. Securities and Exchange Commission (SEC) has approved Figure Markets’ YLDS stablecoin, making it the first interest-bearing stablecoin registered as a security. YLDS is pegged to the U.S. dollar and offers a 3.85% annual yield.
Figure Markets CEO Mike Cagney revealed the company had been working on SEC approval for over a year, highlighting the stablecoin’s potential to replace traditional banking services by allowing users to self-custody and earn interest while transacting.
Growing Interest in Yield-Bearing Stablecoins
Figure Markets is the first to receive regulatory approval, but it’s not alone in exploring this space. Tether co-founder Reeve Collins is developing a decentralized stablecoin through Pi Protocol, which will allow users to mint a stablecoin in exchange for a yield-bearing token.
Stablecoin Regulation Gains Attention
With stablecoins rapidly expanding, U.S. lawmakers are prioritizing regulatory clarity. Other regions, including the EU, Hong Kong, and Singapore, have already advanced stablecoin regulations, while the U.S. lags behind.
Recently, Republican lawmakers French Hill and Bryan Steil proposed the STABLE Act, aiming to establish clear guidelines for stablecoin issuers. However, former CFTC Chair Timothy Massad argued that the proposal still lacks key regulatory measures.
