{"id":"ylds","title":"YLDS","content":"**YLDS** is an interest-bearing digital stablecoin native to the [Provenance Blockchain](https://iq.wiki/wiki/provenance). Legally structured as a transferable face-amount certificate, it is the first asset of its kind to be registered as a security with the U.S. Securities and Exchange Commission (SEC). It is designed to maintain a stable price while paying holders interest derived from a reserve of underlying securities, combining features of traditional [stablecoins](https://iq.wiki/wiki/stablecoin) with the yield of money market funds. [\\[1\\]](#cite-id-ywHb6Og0l3HoEFSN) [\\[2\\]](#cite-id-w2tHas39x0EGnZsb)  [\\[3\\]](#cite-id-3iRTZSaW0vBcWbW5) \n\n## Overview\n\nYLDS functions as a public fixed-income, daily accrual debt security. Its primary purpose is to serve as a yield-generating digital asset for both retail and institutional investors, offering an alternative to non-interest-bearing [stablecoins](https://iq.wiki/wiki/stablecoin) like [USDC](https://iq.wiki/wiki/usdc) and [USDT](https://iq.wiki/wiki/tether). The asset is issued by Figure Certificate Company (FCC), a subsidiary of Figure Markets Holdings, Inc., and is regulated under the Investment Company Act of 1940. [\\[1\\]](#cite-id-ywHb6Og0l3HoEFSN) [\\[2\\]](#cite-id-w2tHas39x0EGnZsb)​\n\nWhile marketing materials often describe YLDS as being pegged 1:1 to the U.S. dollar for user-facing simplicity, its legal structure is more specific. Each YLDS certificate is a share that seeks to preserve a value of 0.01 certificates. [\\[2\\]](#cite-id-w2tHas39x0EGnZsb)​\n\n## Key Features and Mechanisms\n\n### Yield Generation\n\n* **Yield Source:** The interest paid to YLDS holders is generated from a reserve of assets managed by Figure Investment Advisors, LLC. These reserves are invested in securities comparable to those held by prime money market funds, such as short-dated U.S. Treasuries, and may also be held as bank deposits. [\\[1\\]](#cite-id-ywHb6Og0l3HoEFSN) [\\[2\\]](#cite-id-w2tHas39x0EGnZsb)\n* **Accrual and Payout:** Interest accrues for holders on a daily basis. The accumulated interest is then paid out once per month, on the first business day of the month. Payments are made in-kind, meaning holders receive additional YLDS tokens directly in their wallets. [\\[1\\]](#cite-id-ywHb6Og0l3HoEFSN) [\\[3\\]](#cite-id-3iRTZSaW0vBcWbW5)\n\n### Interest Rate Formula\n\nThe interest rate paid on YLDS is variable and is calculated based on a formula tied to a benchmark interest rate. According to the official prospectus and disclosures, the rate is determined by the Secured Overnight Financing Rate (SOFR) minus a spread of 35 basis points (0.35%). The interest rate has a floor, ensuring it cannot fall below 0.00%. [\\[2\\]](#cite-id-w2tHas39x0EGnZsb)​\n\n### Transferability and Asset Recovery\n\nA key technical feature enabled by the [Provenance Blockchain](https://iq.wiki/wiki/provenance) is the ability to transfer YLDS [peer-to-peer (P2P)](https://iq.wiki/wiki/peer-to-peer-trading-p2p). Holders can send the asset instantly to other users on the [blockchain](https://iq.wiki/wiki/blockchain) via a wallet address or email address registered on the Figure Markets platform. The issuer claims YLDS is the only U.S. digitally native security that is [P2P](https://iq.wiki/wiki/peer-to-peer-trading-p2p) transferable. [\\[1\\]](#cite-id-ywHb6Og0l3HoEFSN) [\\[3\\]](#cite-id-3iRTZSaW0vBcWbW5) \n\n## Ecosystem and Associated Entities\n\n* **Parent Company:** Figure Markets Holdings, Inc. is the parent company overseeing the subsidiaries involved in the YLDS project. [\\[2\\]](#cite-id-w2tHas39x0EGnZsb)\n* **Issuer:** Figure Certificate Company (FCC) is a subsidiary of Figure Markets Holdings and is the legal entity that issues the YLDS certificates. \n* **Reserve Custodian:** UMB Bank, N.A., serves as the custodian for the reserve assets backing YLDS. \n* **Transfer Agent and Administrator:** Figure Equity Solutions, Inc. acts as the transfer agent and administrator for YLDS, managing records of ownership and facilitating asset recovery processes. \n* **Auditor:** KPMG LLP is the designated auditor for YLDS, providing external oversight. \n* **Regulator:** As a registered security, YLDS falls under the regulatory purview of the U.S. Securities and Exchange Commission (SEC), specifically its Department of Investment Management. [\\[1\\]](#cite-id-ywHb6Og0l3HoEFSN)\n\n## Trading and Accessibility\n\n* **Availability:** The asset can be purchased and sold 24 hours a day, 7 days a week, 365 days a year on the Figure Markets platform. \n* **Tradable Pairs:** Users can buy and sell YLDS using U.S. dollars and other [stablecoins](https://iq.wiki/wiki/stablecoin). The Figure Markets platform also supports direct trading between YLDS and [Bitcoin (BTC)](https://iq.wiki/wiki/bitcoin-btc). [\\[1\\]](#cite-id-ywHb6Og0l3HoEFSN) [\\[2\\]](#cite-id-w2tHas39x0EGnZsb)\n* **On-Ramp and Off-Ramp:** Investors can purchase YLDS (on-ramp) with USD via bank transfers or with other [stablecoins](https://iq.wiki/wiki/stablecoin). To convert YLDS back into [fiat currency](https://iq.wiki/wiki/fiat-money) (off-ramp), verified holders can redeem their assets for USD, a process available during U.S. banking hours. \n* **Eligible Investors:** YLDS is available globally to both retail and institutional investors. All participants are subject to successful completion of the onboarding and identity verification process. \n* **Onboarding Process:** To purchase YLDS, a user must first sign up for a Figure Markets Wallet, complete the required [KYC](https://iq.wiki/wiki/know-your-customer-kyc) identity verification, and then fund their account to purchase the asset. \n* **Minimum Investment:** There is no minimum investment amount required to purchase YLDS. [\\[1\\]](#cite-id-ywHb6Og0l3HoEFSN) [\\[4\\]](#cite-id-ONGcCFYTeYTuk6EN) ","summary":"YLDS is an SEC-registered, transferable stablecoin native to the Provenance Blockchain. It's a digital debt security designed to maintain a fixed price while paying holders a daily-accrued interest rate based on SOFR, paid monthly.","images":[{"id":"QmdgPsTfymVJNVhXWTv2AFTSXAQMMaFTHK3nVN81ZjbDV2","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[{"id":"Stablecoins"},{"id":"Regulations"},{"id":"Protocols"}],"media":[],"metadata":[{"id":"references","value":"[{\"id\":\"ywHb6Og0l3HoEFSN\",\"description\":\"YLDS Official Website\",\"timestamp\":1771062579639,\"url\":\"https://www.ylds.com/\"},{\"id\":\"w2tHas39x0EGnZsb\",\"description\":\"Figure Markets - YLDS Page\",\"timestamp\":1771062662238,\"url\":\"https://www.figuremarkets.com/c/ylds\"},{\"id\":\"3iRTZSaW0vBcWbW5\",\"description\":\"Figure Markets - YLDS, the Yield Bearing Stablecoin\",\"timestamp\":1771062644170,\"url\":\"https://www.figuremarkets.com/c/learn/ylds\"},{\"id\":\"ONGcCFYTeYTuk6EN\",\"description\":\"CoinGecko: YLDS\",\"timestamp\":1771062932602,\"url\":\"https://www.coingecko.com/en/coins/ylds\"}]"},{"id":"website","value":"https://www.ylds.com/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/ylds"},{"id":"contract_url","value":"https://explorer.provenance.io/asset/uylds.fcc"},{"id":"commit-message","value":"\"Added new wiki page for YLDS\""}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"operator":{"id":"0x4a2bC97afBF41a2Cbf4b4628F63420682Ff4CF2a"},"language":"en","version":1,"linkedWikis":{"blockchains":["provenance"],"founders":[],"speakers":[]}}