YLDS (YLDS)

Overview

YLDS is a dollar-denominated digital asset issued by Figure Certificate Company (FCC). It is often described as a yield-bearing stablecoin because people can hold and transfer it on a blockchain while earning interest. In legal terms, each YLDS holding represents Figure Transferable Certificates: interest-bearing debt securities issued by FCC. The company aims to keep the value steady in dollars and lets holders surrender certificates for their face amount plus accrued interest, under the certificates’ terms. (sec.gov)

This design brings together two familiar ideas. A certificate gives its owner a claim against an issuer, much like other forms of debt. A blockchain token makes that claim easier to record and move digitally. YLDS uses both: transactions appear on a public blockchain, while a registered transfer agent maintains the official ownership record. Its main purposes are to hold a dollar-based balance that earns interest, send that balance to an approved recipient, and use it within Figure’s trading and lending services. (sec.gov)

History & Team

From Figure to YLDS

FCC was incorporated in Delaware in 2023 and launched YLDS on February 20, 2025. It sits within the Figure group, whose businesses include blockchain-based lending and financial marketplaces. After a group reorganization in 2025, Figure Technology Solutions became FCC’s ultimate parent company. Mike Cagney is a Figure co-founder and executive chairman; FCC is the company that issues the YLDS certificates. (sec.gov)

Several Figure businesses have distinct jobs. Figure Investment Advisors manages FCC’s reserve assets. Figure Equity Solutions acts as the transfer agent, keeping the official list of certificate owners. Figure Markets provides an account, wallet interface, and marketplace through which users can obtain and use YLDS. Separating these roles helps explain why a transfer involves more than simply sending a token between two wallet addresses. (sec.gov)

Figure has also worked with other tokenized-finance firms. In November 2025, Ondo Finance announced a $25 million purchase of YLDS for use among the assets supporting its Ondo Short-Term US Treasuries Fund, known as OUSG. That purchase is an example of an institution using YLDS within another financial product. (ondo.finance)

Technology & How It Works

A blockchain record and an official register

YLDS began on Provenance Blockchain. FCC’s filings identify Provenance as its primary public network and describe Solana, Sui, Stellar, and Avalanche as networks it may also use, subject to approval and availability. Figure announced plans for native YLDS deployments on Sui and Solana in 2025. The network a holder can use depends on FCC’s and its transfer agent’s supported arrangements. (sec.gov)

A public blockchain records actions such as issuing, sending, and surrendering certificates. Wallet addresses and transaction details can appear on-chain, while identifying information, including an owner’s name, stays in the transfer agent’s separate records. Figure Equity Solutions links these pieces together to maintain the official register. It can also make a new on-chain entry to correct an unauthorized or mistaken transfer. (sec.gov)

YLDS transfers follow an approval process. A recipient needs an FCC account and an approved wallet before the transfer agent can recognize a change in ownership. That rule shapes how the token works across apps: a wallet’s ability to display YLDS alone does not make it an approved destination. For transfers between approved wallets, FCC or its affiliates cover the relevant blockchain transaction fees, according to FCC’s annual filing. (sec.gov)

Tokenomics & Utility

Certificates, interest, and reserves

YLDS has an issuer-based economic model rather than a fixed supply set by a token-mining schedule. FCC issues certificates when they are purchased and cancels them when they are surrendered. Each Figure Transferable Certificate has a one-cent face amount. A dollar-denominated YLDS balance can therefore represent a group of these certificates. Holders have a claim under the certificates’ terms, but the certificates carry no vote in FCC and no right to company dividends. (sec.gov)

The interest rate is tied to the overnight Secured Overnight Financing Rate, or SOFR, minus 35 basis points—that is, 0.35 percentage points—with a minimum rate of zero. SOFR measures the cost of overnight borrowing backed by U.S. Treasury securities. Because the benchmark can move, the interest rate can move too. Simple interest accrues daily for the holder of record and is paid monthly. FCC’s terms call for that payment to be reinvested in additional certificates unless the holder opts out. (sec.gov)

FCC uses proceeds from issuing certificates to hold income-producing assets. Its filings describe U.S. Treasury securities, Treasury-backed repurchase agreements, and money market funds among its cash-equivalent investments. A repurchase agreement is a short-term transaction in which securities are sold with an agreement to buy them back later. FCC maintains capital and reserves to support what it owes certificate holders. The certificates have a 20-year maturity, and holders may surrender them earlier under their terms. (sec.gov)

Ecosystem & Use Cases

YLDS serves several roles inside Figure Markets. A holder can keep it in a Figure Markets account to accrue interest, send it to another approved recipient, or use it in supported trading. Figure’s educational guide describes transfers by email address or wallet address and shows how users can view accrued interest and transaction history in its app. (figuremarkets.com)

It also connects trading with lending. Figure uses YLDS in Democratized Prime, its on-chain lend-and-borrow marketplace. Its lending-pool materials show YLDS as an asset used in pools connected to home-equity lending and other forms of credit. Figure has also described YLDS as a payment mechanism for trades on its exchange and as the settlement asset for trades in its blockchain-native shares on its alternative trading system. (figuremarkets.com)

Beyond Figure, Ondo’s OUSG purchase shows how another issuer can hold YLDS as part of a tokenized product. Figure’s Sui and Solana announcements describe further uses being developed around trading, settlement, and decentralized-finance applications. These integrations extend the idea behind YLDS: a dollar-based asset that can earn interest while taking part in blockchain transactions. (ondo.finance)

Advantages & Challenges

YLDS combines daily interest accrual with digital transfers and a defined U.S. securities structure. Public blockchains provide a visible transaction history, while the transfer agent maintains a register connecting approved wallets to their owners. Its dollar-denominated design can also make it useful as a common asset for payments, trades, and lending within Figure’s services. (sec.gov)

The same structure creates limits. Recipients must complete onboarding and use approved wallets, so YLDS cannot move through every wallet or open-ended crypto application in the same way. On-chain activity and legally recognized ownership must remain aligned through the transfer agent. Its interest rate also follows SOFR rather than staying at one level. These features make YLDS a blend of blockchain convenience and managed financial recordkeeping. (sec.gov)

Where to Buy & Wallets

YLDS is available on Figure Markets. Users can fund a Figure Markets account through supported methods, purchase YLDS there, and view their holdings and accrued interest on the website or mobile app. Figure’s guide also describes buying and selling YLDS with U.S. dollars or supported stablecoins. A holder can request a surrender through the platform under the certificate terms. (figuremarkets.com)

Figure Markets provides wallet tools for holding, sending, and receiving YLDS. To send it, an account holder selects YLDS, enters an approved recipient’s email address or wallet address, and submits the transfer. FCC also describes the use of approved wallets on supported blockchains. Wallet approval and the transfer agent’s records are part of how ownership is established, regardless of which supported network displays the asset. (figuremarkets.com)

Regulatory & Compliance

In the United States, FCC is registered with the Securities and Exchange Commission as a face-amount certificate company under the Investment Company Act of 1940. Its YLDS certificates are registered securities. Figure Equity Solutions is an SEC-registered transfer agent and keeps the official holder record. FCC also collects identifying information for securities and anti-money-laundering compliance, so account and wallet approval form part of the process for receiving YLDS. Use outside the United States depends on the relevant local rules and the availability of FCC’s services. (sec.gov)

YLDS is generally not considered Shariah compliant under mainstream Islamic finance principles. Its certificates are debt obligations that pay interest, and FCC earns income from instruments including Treasuries and Treasury-backed repurchase agreements. Islamic finance standards prohibit interest, known as riba, as a basis for financial returns. This assessment follows from the certificates’ interest-based design rather than from the blockchain used to transfer them. (sec.gov)

Future Outlook

Figure’s stated direction is to make YLDS useful across more financial activities: settlement, lending, payments, and applications on additional blockchains. Its Sui and Solana partnerships show how the company has approached that goal through integrations with other networks and their developers. Any particular integration depends on the work needed to support both the blockchain transaction and FCC’s ownership and compliance records. (investors.figure.com)

YLDS illustrates a broader path for tokenized finance. Rather than moving an existing asset through a blockchain alone, it was issued as a digital security with transfer rules, interest terms, reserve management, and an official register built into its operation. Its development will be shaped by how many useful places can support that full arrangement. (sec.gov)

Summary

YLDS is Figure Certificate Company’s interest-bearing digital security, designed to hold a dollar-based value and move between approved participants on supported blockchains. It earns interest linked to SOFR, supports uses in Figure’s trading and lending ecosystem, and relies on a registered transfer agent for its official ownership record. In the crypto ecosystem, it offers a clear example of how blockchain transfers and U.S.-registered securities can operate together. (sec.gov)