The SEC has approved a yield-bearing stablecoin, which marks a significant shift in the crypto stablecoin landscape.
This asset class plays a crucial role in the crypto market by facilitating billions of transactions daily.
Traditionally, stablecoins have offered price stability but lacked yield, meaning investors had to accept zero returns. This changed when the US Securities and Exchange Commission (SEC) approved the first yield-bearing stablecoin, as reported by Bloomberg.
Recently, the SEC gave the green light to Figure Certificate Co. to issue a yield-bearing stablecoin called YLDs. Unlike conventional stablecoins, which generate issuer revenue without providing direct returns to holders, YLDs will earn yield by investing reserves in securities like US Treasuries and commercial paper.
