A new stablecoin is on the market.
Figure Markets describes its new stablecoin as the first SEC-registered USD public security natively on a blockchain.
It is called YLDS and pays an interest of the secured overnight funding rate (SOFR), minus 0.50%. The Provenance Blockchain allows users to transfer securities from one person to another using Figure Markets self-custody wallets.
In London, at the Digital Asset Summit of Blockworks about a month ago, I had the opportunity to catch up with Mike Cagney. He told me then — following a $60 million raise — that his company was working toward having a registered security alternative to stablecoins that would pay a yield. This filing was from October 2023.
We are here.
It comes about a week after Circle stablecoins acquired Hashnote. Hashnote was the company behind the creation of the first tokenized money-market fund.
Circle CEO Jeremy Allaire highlighted the need for participants to be able to use yield-bearing assets, and also convert them easily into tokenized cash. (Referring to USDC).
The stablecoin has been called the crypto killer app, and an innovator in payments.
Andrew O’Neill, digital assets managing director at S&P Global Ratings, noted in a recent report that stablecoins could lead to more TradFi-DeFi overlap — like in the case of cross-border payments, the tokenization of real-world assets (RWA) or digital bonds issuance.
According to data from rwa.xyz, the market cap of stablecoins is nearly $222 billion. There are approximately 149 millions stablecoin owners. RWAs on Onchain total about $17.5 billion.
“The lack of a consensus about the tools that should be used to bring money natively onchain is among the main factors that hinder the development of digital bonds and RWA tokenization.”
We’re keeping an eye out for stablecoin legislation in the US, as S&P Global analysts expect regulation to bolster the category’s adoption.
They predict a certain number of users will be able to “transition progressively” From unregulated stablecoins to regulated ones. Figure might be on to something.
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