Latest SEC Approves Yield-Bearing Stablecoin as Crypto Regulations Evolves in Cryptocurrency

2025-02-20T23:22:43.602+02:00 T h u r s d a y , 2 0 / 0 2 / 2 0 2 5 | 2 1 : 2 2 G M T by Jared Kirui The newly approved stablecoin, YLDs, is issued by Figure Markets and will reportedly invest in US treasuries and commercial paper. Trump administration’s executive order on digital assets supports the growth of dollar-backed stablecoins. iStock SEC approved a yield-bearing stablecoin, introducing anew era for crypto stablecoins. The asset class is an important aspect of thecrypto market that facilitates billions of daily transactions. However, they have traditionally lacked yield, forcinginvestors to forgo returns in exchange for price stability. That has nowchanged after the U.S. Securities and Exchange Commission (SEC) approved thefirst yield-bearing stablecoin, Bloomberg reported. A Stablecoin That Pays Interest Earlier this week, the SEC approved securities fromFigure Certificate Co., allowing the company to offer a yield-bearing stablecoin known as YLDs. Unlike traditional stablecoins, which earn issuersrevenue but provide no direct returns to holders, YLDs will generate yield byinvesting reserves in securities such as U.S. Treasuries and commercial paper. The SEC has classified YLDs stablecoins as“certificates,” making them subject to securities regulations. This sets them apart from other major stablecoins likeTether’s USDT, which does not offer yield to users despite earning billions inreserve income. 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 Figure Markets expects YLDs to compete with existingstablecoins in key applications such as payments , cross-border transfers, andcollateralized lending. Its primary rivals include Tether, which remains thedominant player in the stablecoin market, and BlackRock’s BUIDL, a fund-backedstablecoin designed for institutional investors. Interest in yield-bearing stablecoins is heating up. ATether co-founder recently announced plans to launch a similar product,highlighting the growing recognition of investor demand for passive income ondigital assets. Regulatory Support and Future Outlook Figure Markets began the approval process in August2023 by filing a confidential S-1 with the SEC. Under then-Chairman Gary Gensler, the company navigated the regulatory landscape and ultimately secured approval. This regulatory nod may set the stage for moreyield-bearing stablecoins, though experts estimate that additional SECapprovals could take six to 12 months. Stablecoins have received increased attention fromU.S. policymakers. The Trump administration’s recent executive order on digitalassets included support for the growth of dollar-backed stablecoins, signalingfurther regulatory clarity. Meanwhile, Congress continues to develop stablecoinlegislation, which could create a formalized framework for these assets. With regulatory approval in hand and competitionintensifying, the emergence of yield-bearing stablecoins could reshape thecrypto market, providing investors with new ways to earn passive income whilemaintaining price stability. SEC approved a yield-bearing stablecoin, introducing anew era for crypto stablecoins. The asset class is an important aspect of thecrypto market that facilitates billions of daily transactions.  » …

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