Homepage of the U.S. Securities and Exchange Commission (SEC), an independent agency of the United States federal government, is seen on a computer.

Homepage of the U.S. Securities and Exchange Commission (SEC). Source: Jarretera - stock.adobe.com

Key Takeaways:

The SEC has approved Figure Markets’ U.S. dollar-pegged YLDS stablecoin, offering a 3.85% yield.
YLDS is officially registered as a security, marking a milestone for interest-bearing digital assets.
Tether co-founder Reeve Collins is also planning to launch a yield-generating stablecoin via Pi Protocol.

Figure Markets has become the first company to receive U.S. Securities and Exchange Commission (SEC) approval for an interest-bearing stablecoin.

According to SEC filings published on February 18, the company can now launch its YLDS stablecoin, which is pegged to the U.S. dollar and offers a 3.85% yield to holders.

Stable Coin News: Long time guest on The Office Space @FigureMarkets receives #SEC approval for their $YLDS interest bearing Stable Coin – the first of its kind.

The stablecoin, called YLDS and developed by the digital assets firm Figure Markets, will be pegged to the U.S.… pic.twitter.com/7a1dmEam54
— MartyParty (@martypartymusic) February 20, 2025

The token is officially registered as a security, marking a major regulatory milestone for interest-generating digital assets.

Figure Markets CEO Mike Cagney stated that the company had been working on the approval process for over a year.

He highlighted the potential for stablecoins to replace traditional banking by allowing users to self-custody assets while earning interest and conducting transactions.

While Figure Markets is the first to secure SEC approval, other companies are also exploring yield-bearing stablecoins.

Tether co-founder Reeve Collins is preparing to launch a decentralized stablecoin through his Pi Protocol, allowing users to mint a stablecoin in exchange for a yield-bearing token.

These developments suggest a growing trend toward integrating interest-generating features into digital assets, potentially reshaping the financial landscape.