A look at the new SEC-registered, yield-bearing stablecoin

The new offering debuts amid recent reports that stablecoins could lead to more TradFi-DeFi overlap

article-image

Figure CEO Mike Cagney | Ben Solomon Photo LLC for Blockworks

share


This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.


There’s a new stablecoin on the block. 

Figure Markets is calling its new offering the first SEC-registered public security USD stablecoin native to a blockchain.

Called YLDS, it pays an interest rate of secured overnight financing rate (SOFR) minus 0.50%. Users can transfer the securities peer-to-peer via the Provenance blockchain using Figure Markets’ self-custody wallets.

It was roughly a year ago that I caught up with Figure CEO Mike Cagney at Blockworks’ Digital Asset Summit in London. He told me then — following a $60 million raise — that his company was working toward having a registered security alternative to stablecoins that would pay a yield. There was this filing from October 2023.

So here we are. 

The launch comes about a month after stablecoin issuer Circle acquired Hashnote, a company that created the largest tokenized money market fund.

Circle CEO Jeremy Allaire noted the demand for market participants using yield-bearing collateral, while also being able to easily convert it to tokenized cash (referring to USDC).

Stablecoins have been called crypto’s killer app and a payments space disruptor.

Andrew O’Neill, digital assets managing director at S&P Global Ratings, noted in a recent report that stablecoins could lead to more TradFi-DeFi overlap — like in the case of cross-border payments, the tokenization of real-world assets (RWA) or digital bonds issuance.

Stablecoins’ market capitalization stands at nearly $222 billion; there are roughly 149 million stablecoin holders, according to rwa.xyz data. Onchain RWAs amount to about $17.5 billion.   

“The lack of a consensus about the tools that should be used to bring money natively onchain is among the main factors that hinder the development of digital bonds and RWA tokenization.”

We’re keeping an eye out for stablecoin legislation in the US, as S&P Global analysts expect regulation to bolster the category’s adoption. 

To that point, they forecast a number of users to “transition progressively” from unregulated to regulated stablecoins. So perhaps Figure is on to something.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Pipe Network is a decentralized content delivery network (dCDN) that replaces the sparse, capital intensive data center footprint of traditional CDNs with a permissionless mesh of independent node operators. By orchestrating under-utilized resources that already exist at the edge, rather than purchasing or leasing thousands of servers, Pipe slashes capital intensity while letting supply expand autonomously in the places where bandwidth is scarcest and most expensive.

article-image

With Galaxy set to report earnings tomorrow, Rittenhouse Research rated it a strong buy in a recent note

article-image

A new quantum experiment shows that observation changes reality — but investors knew that already

article-image

Solana apps and app tokens could be in for a ‘mass repricing’

article-image

Company looks to bring tokenized equities “to meet the moment in this new regulatory environment,” CEO Brian Armstrong said

article-image

Musings on securities laws, plus Paul Atkins unveiling “Project Crypto” at the SEC

article-image

A spooky story about the importance of self-custody