Last week Figure Markets announced the launch of its YLDS ‘stablecoin‘, which is novel in several ways, including that it offers a yield and is registered with the U.S. Securities and Exchange Commission (SEC). YLDS is quite different from the biggest stablecoins in offering a return, but also has higher risk.
Under current U.S. laws, if an asset provides a yield then it’s a security, which is the reason Figure needed to register with the SEC. Not only does it offer a yield, but it is available to U.S. retail users and institutions. Interest accrues daily on the asset, and it pays out monthly.
Today the big US stablecoins don’t offer a yield, but U.S. citizens can earn yields on tokenized money market funds, which will often provide a better return than YLDS.
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