# YLDS > 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 pa... - Canonical URL: https://iq.wiki/wiki/ylds - Categories: Cryptoassets - Tags: Stablecoin, Government, Infrastructure - Created: 2026-02-14T09:56:03.736Z - Last updated: 2026-02-17T07:22:01.000Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **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) ## Overview YLDS 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)​ While 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)​ ## Key Features and Mechanisms ### Yield Generation - **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) - **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) ### Interest Rate Formula The 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)​ ### Transferability and Asset Recovery A 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) ## Ecosystem and Associated Entities - **Parent Company:** Figure Markets Holdings, Inc. is the parent company overseeing the subsidiaries involved in the YLDS project. [[2]](#cite-id-w2tHas39x0EGnZsb) - **Issuer:** Figure Certificate Company (FCC) is a subsidiary of Figure Markets Holdings and is the legal entity that issues the YLDS certificates. - **Reserve Custodian:** UMB Bank, N.A., serves as the custodian for the reserve assets backing YLDS. - **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. - **Auditor:** KPMG LLP is the designated auditor for YLDS, providing external oversight. - **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) ## Trading and Accessibility - **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. - **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) - **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. - **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. - **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. - **Minimum Investment:** There is no minimum investment amount required to purchase YLDS. [[1]](#cite-id-ywHb6Og0l3HoEFSN) [[4]](#cite-id-ONGcCFYTeYTuk6EN)