In a revolutionary move for the cryptocurrency landscape, the SEC has just approved YLDS, the first interest-bearing stablecoin to be registered as a security. This exciting development, spearheaded by Figure Markets, offers a daily yield of 0.5%, challenging everything we knew about traditional banking. With Figure’s CEO, Mike Cagney, raising compelling questions about the relevance of banks when users can self-custody their assets and earn interest independently—one has to wonder: could we be witnessing the dawn of a new financial era? Furthermore, the necessary Know Your Customer (KYC) protocol adds an intriguing layer of security to this innovative financial tool, while also restricting unverified users from earning that tantalizing daily yield. So, what does this fresh perspective mean for the future of stablecoins and our relationship with banks? Let’s delve deeper into the implications. LEARN MORE
Key Notes
- The SEC approved Figure Markets’ YLDS, the first interest-bearing stablecoin registered as a security, offering a 0.5% daily yield.
- Figure’s CEO, Mike Cagney, calls YLDS a game-changer, questioning banks’ role if users can earn and transact independently.
- YLDS buyers must complete KYC, and without verification, they can hold the asset but won’t receive daily interest.
The US Securities and Exchange Commission (SEC) has given the crypto industry a significant nod by approving the first-ever interest-bearing stablecoin. Figure Markets, a digital asset firm, received the green light for YLDS, a stablecoin pegged to the US dollar that offers daily yield payments to its holders.
