Figure receives SEC approval to issue its first interest-bearing stablecoin, YLDS.

On 20 February, Fortune reported that the US Securities and Exchange Commission (SEC) has approved the first application for the issuance of an interest-bearing stablecoin. YLDS, a stablecoin developed by digital asset firm Figure Markets, will be pegged to the U.S. dollar and offer an annualised yield of 0.5%.

The stablecoin will be officially registered with the SEC as a security, with the same financial class status as stocks and bonds, said Mike Cagney, CEO of Figure Markets, adding that YLDS will be available to users on Thursday and that holders will need to complete a KYC verification process in order to receive daily returns. Those who are not KYC verified will be able to hold but will not be able to earn.