TLDR
- YLDS, a yield-bearing SEC token, is now available on the Sui blockchain.
- Figure’s YLDS token provides daily yield from tokenized Treasurys on Sui.
- Sui integration allows YLDS token for margin trading and stablecoin swaps.
- Figure aims to democratize access to institutional financial products via blockchain.
Figure Technology Solutions has announced the launch of its SEC-registered, yield-bearing security token, YLDS, on the Sui blockchain. This marks the first time YLDS has been deployed outside of the Provenance blockchain. The partnership aims to provide Sui users with the opportunity to earn yield from tokenized Treasurys and offers integration with Sui’s trading venue, DeepBook. The move also sets the stage for future collaborations, offering users a new way to access institutional-grade financial products.
YLDS Token’s Transition to Sui Blockchain
Figure Technology Solutions has expanded its YLDS token beyond its initial launch on the Provenance blockchain by bringing it to the Sui network. YLDS, a debt security instrument backed by short-term Treasurys and repurchase agreements, offers daily accrual of yields. These yields are based on the Secured Overnight Financing Rate (SOFR) minus 35 basis points.
This shift to the Sui blockchain is a significant move for Figure as it extends the reach of its regulated yield-bearing asset. Sui’s infrastructure will support various use cases for YLDS, including integration with Sui’s primary trading platform, DeepBook. This connection is expected to enhance the platform’s functionality, especially in upcoming margin trading features, with stablecoins being automatically converted into YLDS on the DeepBook platform.
Sui’s Role in the Integration
The partnership with Sui provides users with the ability to earn yield from tokenized Treasurys directly within the DeepBook trading platform. This is a first step in creating a deeper connection between DeFi and traditional financial systems. As Sui continues to build its ecosystem, this partnership with Figure sets the stage for further integrations that will introduce new functionalities such as margin trading.
The integration of YLDS with DeepBook aims to simplify access to yield-bearing assets while utilizing blockchain technology for seamless, decentralized transactions. The automatic conversion of stablecoins into YLDS offers a more efficient method for users to engage with yield-bearing investments on the platform, eliminating the need for external intermediaries.
Broader Vision for SEC-Compliant Tokens
Mike Cagney, co-founder of Figure, emphasized that deploying YLDS on Sui is just the beginning of a broader initiative. The plan is to introduce SEC-compliant, yield-bearing security tokens across various blockchain networks. By doing so, Figure aims to democratize access to institutional-grade financial products and remove traditional intermediaries from the process.
This vision is part of Figure’s larger strategy to leverage blockchain technology in reshaping the financial landscape. Through the creation of new tokenized products and partnerships with blockchain platforms like Sui, Figure hopes to make these financial products more accessible to a wider audience.
Future Developments and Potential
Looking ahead, Figure has plans to expand its offerings on the Sui blockchain. Minting YLDS directly on Sui will eventually provide users with a fiat on- and off-ramp, allowing them to access USD without needing to go through traditional crypto exchanges. This feature could have a profound effect on how users interact with both crypto and traditional fiat systems.
Further integrations involving YLDS and the native SUI token are also on the horizon. By building on the success of this partnership, Figure is positioning itself to play a central role in the future of decentralized finance, offering secure, yield-bearing financial products on a range of blockchain networks.
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