A First in the USA: SEC Approval Received for Yield-Generating Coin! - Coin Bulletin

The U.S. Securities and Exchange Commission (SEC) has approved Figure Markets' yield-generating stablecoin project YLDS and officially registered this stablecoin as a security.

The stablecoin market continues to expand with new products that combine traditional finance with crypto assets. Most recently, Figure Markets launched YLDS, the first SEC-approved interest-bearing stablecoin. This token, which is pegged to the U.S. dollar, provides an annualized yield of 3.85% and has the status of a security, allowing investors to secure their earnings.

How does YLDS work?

YLDS is backed by prime money market funds and provides daily interest income to its holders. Users are eligible for these returns after going through certain KYC (Kimlik Doğrulama) processes. Interest payments are made every month in dollars or YLDS tokens. In addition, this stablecoin is transferable 24/7 and interchangeable with other stablecoins, while fiat conversions are carried out during US banking hours**.

Figure Markets CEO Mike Cagney stated in his interview with Fortune that this innovative stablecoin model questions the need for traditional banks. He emphasized the potential impact of YLDS in the financial world with the words "If I can hold this stablecoin, store it in my wallet, earn interest, and make transactions, why do I need a bank?"

A new step in the regulatory framework

The SEC's approval of YLDS is considered a critical step in terms of stablecoin regulation in the United States. U.S. authorities, who have long been working on the regulation of stablecoins, have opened up a new path for how to manage yield-bearing digital assets. While stablecoin regulations are advancing rapidly in regions such as the European Union, Hong Kong, and Singapore, the United States has often been criticized for lagging behind in this area.

On the other hand, other stablecoin providers have also started developing similar projects. For example, Reeve Collins, co-founder of Tether, announced that he will launch a new interest-bearing stablecoin project within this year.

The success of YLDS could play a decisive role in how traditional finance can be integrated into blockchain-based assets. It is a matter of curiosity how these new generation stablecoins, which offer a stable income model for cryptocurrency investors, will impact the sector.