Figure Markets Launches the First “SEC-Approved” Interest-Bearing Stablecoin YLDS, But With a Critical Condition

Here is the English translation: According to a report by Fortune magazine on February 18, the U.S. Securities and Exchange Commission (SEC) has this week approved the interest-bearing stablecoin YLDS launched by Figure Markets. It is reported that YLDS will be pegged to the U.S. dollar, and its main feature is that it can provide users with fixed income similar to bank cash savings, with the current interest rate at 3.85%, which can be adjusted in the future according to the situation. Registered as a Security with the SEC According to documents disclosed by the SEC, YLDS has officially been registered as a security with the SEC, which means that under the current unclear regulatory framework for stablecoins in the U.S., YLDS has been recognized by the regulatory authority and classified in the same financial category as stocks or bonds. On this, Figure CEO Mike Cagney said in an interview: "We believe this is a huge transformation. Imagine if I could hold YLDS, be able to self-custody my assets, and still enjoy the interest income it generates, and YLDS can also be used for transactions, then what do I still need a bank for?" Interest Enjoyment Requires KYC Currently, Figure Markets has officially announced the launch of YLDS to users on the social platform X yesterday (21st). Figure Markets wrote: "This is the first interest-bearing stablecoin regulated by the U.S. SEC: $YLDS, with the following features: - Earn yield: currently around 3.85% - No collateral, no unlocking - Available for trading 24/7 Now all users, including U.S. residents and banks, can obtain YLDS from Figure Markets and Provenance Blockchain Foundation." However, it should be noted that although YLDS has the dual advantages of regulatory compliance and providing yield, according to the official announcement, purchasing YLDS requires users to undergo KYC, i.e. identity verification, to prevent fraud, money laundering and other illegal activities. If YLDS holders transfer the stablecoin to other users who have not undergone KYC, although those users can hold the stablecoin, they will not be able to enjoy the YLDS yield.