SEC Approves First Interest-Bearing Stablecoin $YLDS

On February 20, 2025, the SEC approved YLDS, the first interest-bearing stablecoin classified as a security, developed by Figure Markets. This stablecoin offers a 0.5% yield to holders and operates on the Provenance Blockchain, with interest accrued daily and paid monthly. Following the announcement, trading volumes surged, indicating strong demand, and the market cap reached $100 million within two hours. YLDS aims to provide an alternative for investors looking for yield-bearing digital assets, contrasting with existing stablecoins that do not offer payouts to holders. The approval is seen as a significant step in the regulatory landscape for cryptocurrencies, potentially influencing future offerings of yield-bearing assets. Figure Markets is optimistic about attracting developers to integrate YLDS into decentralized finance and payment applications.