SEC Approves YLDS, First Interest-Bearing Stablecoin in the US
The US Securities and Exchange Commission (SEC) has approved the first interest-bearing stablecoin, YLDS, developed by Figure Markets. This stablecoin is pegged to the US dollar and offers daily yield payments.
- YLDS is registered with the SEC as a security, distinguishing it from stablecoins like USDT and USDC.
- This regulatory classification addresses previous legal uncertainties in the crypto industry.
- Figure's CEO Mike Cagney highlighted the implications for traditional banking, questioning their necessity if individuals can self-custody funds and earn interest.
- The SEC’s approval reflects growing demand for stablecoins, which have seen market capitalization increase to approximately $225 billion.
- YLDS will offer a daily yield of 0.5%, contrasting with Tether's zero yield.
- The launch requires buyers to complete a Know-Your-Customer (KYC) process to comply with financial regulations.
- Stablecoins are increasingly recognized as a bridge between traditional finance and decentralized finance.
Regulatory frameworks for stablecoins are evolving globally, with jurisdictions like the EU and Singapore already implementing comprehensive regulations. The SEC's approval represents a significant step toward structured oversight in the US stablecoin market.