Figure Markets Debuts Yield-Bearing Stablecoin 'YLDS'

Fintech firm Figure Markets launched YLDS, the first U.S. SEC-registered stablecoin that pays holders a yield. Announced in late February, YLDS is backed by assets in prime money market funds and accrues interest daily (payouts occur monthly). It targets an annual yield about 0.5% below SOFR (roughly 3.8% APY) to compete with traditional finance yields.

Notably, YLDS is legally classified as a security – a novel approach that required SEC approval but allows U.S. retail investors to earn interest on a stablecoin. Figure's move bridges TradFi and crypto, though the stablecoin's adoption will be monitored under regulatory scrutiny.

Source: CoinDesk – Figure Markets offers SEC-registered yield-bearing stablecoin