 minus 0.5% to determine its annual percentage rate (APR), offering crypto investors a stable method for revenue generation within the decentralised finance (DeFi) ecosystem.){kind=link}
24th February 2025 – (New York) Figure Markets has introduced YLDS, the first yield-bearing stablecoin approved by the SEC, built on Solana’s blockchain. This innovative product will use the Secured Overnight Financing Rate (SOFR) minus 0.5% to determine its annual percentage rate (APR), offering crypto investors a stable method for revenue generation within the decentralised finance (DeFi) ecosystem.
The SEC has classified YLDS as a ‘registered public security’, instilling a level of trust that may be absent in non-regulated alternatives. This approval aligns with Solana’s significant strides in the stablecoin market, which currently boasts a market capitalisation of approximately AU $15 billion, making it the third-largest chain behind Ethereum and Tron.
YLDS will allow investors to redeem their tokens for USD or in-kind, facilitating 24/7 access to liquidity and demonstrating the blockchain’s capability for yield-bearing assets. The APR, linked to SOFR—which currently stands at 4.35%—means investors can anticipate earnings of up to 3.85% annually. Interest will be accrued daily, with payouts occurring monthly.
This launch adds to the growing roster of tokenised funds within the industry, which continues to show robust potential despite a relatively quiet February in the crypto markets. Institutions remain active behind the scenes, working to drive innovation within the blockchain sector. With features such as low fees and constant fiat off-ramps, YLDS stands to offer significant advantages over traditional yield-generating methods.