US SEC approves the first yield-bearing stablecoin

The US SEC has approved YLDS, the first yield-bearing stablecoin, with 3.85% APR.
YLDS trades 24/7 on Figure Markets and its APR is paid monthly in USD or YLDS.
The stablecoin’s APR outperforms Treasury bonds.

The US Securities and Exchange Commission (SEC) has approved YLDS, the first yield-bearing stablecoin. The stablecoin is officially registered as a public security.

Introducing the first-ever SEC-regulated, yield-bearing stablecoin: $YLDS

✅Risk-free yield at SOFR – 50bps (3.85%)✅No staking or lockups✅Buy/sell 24×7

It’s time for real assets with real value. pic.twitter.com/Vt1Ilw5jGv

— Figure Markets (@FigureMarkets) February 20, 2025

This regulatory milestone signals a new chapter in the evolution of digital assets, blending the reliability of stablecoins with the income-generating potential of traditional financial instruments.

The YLDS stablecoin delivers a 3.85% APR

Unlike conventional stablecoins, which are typically pegged to a fiat currency like the US dollar to maintain price stability without offering returns, YLDS introduces a novel feature: a consistent yield for its holders.

The YLDS stablecoin delivers an annual percentage rate (APR) of 3.85%, calculated as the Secured Overnight Financing Rate (SOFR) — currently at 4.35% — minus a 0.50% spread. This yield is accrued daily and distributed monthly, with investors having the flexibility to receive payouts in US dollars or additional YLDS tokens.

With its 3.85% APR, YLDS positions itself as a competitive player in the fixed-income landscape. While it falls short of the average high-yield savings account rate of 4.75%, it outperforms US Treasury bonds, which currently yield approximately 2.89% for 10-year notes and 3.24% for 30-year bonds.

This yield differential makes YLDS an attractive proposition for investors looking to diversify their portfolios with a blockchain-based asset that delivers steady returns without the volatility typically associated with cryptocurrencies like Bitcoin or Ethereum.

The stablecoin’s reliance on SOFR, a benchmark interest rate widely used in financial markets, further enhances its credibility. As SOFR fluctuates with broader economic conditions, YLDS’ yield will adjust accordingly, ensuring its returns remain tied to real-world financial dynamics—an appealing feature for risk-averse investors.

Figure Markets, the company behind YLDS, designed the stablecoin to cater to investors seeking both stability and passive income. By registering YLDS with the SEC, the firm ensures full compliance with US securities laws, setting a precedent for how blockchain-based financial products can integrate into the regulated financial ecosystem.

The introduction of YLDS reflects Figure Markets’ mission to innovate at the crossroads of blockchain and finance. By combining the steady value preservation of stablecoins with an interest-bearing mechanism, YLDS offers a compelling alternative to existing investment options.

YLDS’ trading and accessibility

YLDS is available for trading on Figure Markets’ platform, which operates 24/7, allowing investors to buy, sell, or exchange the stablecoin using USD or other stablecoins at any time.

For those preferring to cash out into fiat currency, conversions are facilitated during standard US banking hours.

This round-the-clock trading capability aligns with the decentralized ethos of cryptocurrency while maintaining a bridge to traditional financial systems.