YLDS (YLDS)

What YLDS is

YLDS is not a stablecoin in the usual sense. It is a registered security that happens to move on public blockchains. Its prospectus describes the instrument as "interest-bearing debt securities" issued by Figure Certificate Company, which it identifies as a "face-amount certificate company registered with the U.S. Securities and Exchange Commission ... under the Investment Company Act of 1940" (source: Figure Certificate Company prospectus filed with the SEC on 24 April 2026). Each certificate pays interest to the holder, and that interest is the point of the product.

The distinction matters for how you should read everything else on this page. A fiat backed stablecoin is a payment instrument whose issuer keeps the yield on the reserves. A face-amount certificate is a debt security whose issuer contracts to pay the yield to you, under a registration statement reviewed by a securities regulator, with the periodic reporting that entails.

How it works

The interest rate is formulaic rather than discretionary. The prospectus sets it at "the overnight Secured Overnight Financing Rate ('SOFR') less 35 basis points, with a minimum rate of 0.00%." When SOFR moves, the rate on the certificate moves with it, and the floor means the rate cannot go negative.

Accrual is daily and so is crediting. The prospectus states that "simple interest accrues daily and is credited daily to the Certificate holder," beginning within two business days of purchase. Accrued interest "is paid monthly in U.S. dollars" and "will automatically be reinvested in additional Certificates, unless an investor opts out."

The unit economics are unusually granular. Certificates are "issued daily at a price of $0.01/certificate" with "no minimum initial purchase amount." They may be "surrendered at any time at face amount ($0.01/certificate), plus accrued interest (minus any applicable expenses or fees)," with "no surrender charges." Each certificate matures 20 years from its issue date.

On the ledger side, the prospectus says the certificates are issued using "open source, public, blockchain-based distributed ledgers," primarily the Provenance Blockchain, with support for Solana, Stellar, Avalanche and Sui. They are "transferable in peer-to-peer and ATS transactions" on approved blockchains, which is what separates YLDS from a fund share that can only be redeemed with the issuer.

A prospectus supplement filed on 6 August 2026 covers the mechanics of buying and surrendering through the portal at ylds.com, including wire, ACH, stablecoin conversion and stored-value funding, with surrender settlement running from 24 hours to 10 days depending on the method chosen (source: Figure Certificate Company prospectus supplement, SEC filing 424B3, 6 August 2026).

Supply and tokenomics

There is no fixed supply and no issuance schedule. Certificates are created when investors buy them and extinguished when investors surrender them, so the outstanding amount is a function of demand rather than a published cap.

The registration history is public and worth knowing, because it is the reason the terms above are enforceable rather than promotional. Figure Certificate Company, SEC central index key 0001974395, filed a Form S-1 registration statement on 24 October 2023 together with Forms N-8A and N-8B-4, the notification and registration statement used by investment companies. Amendment No. 6 to the S-1 followed on 18 February 2025. The company applied for an exemptive order in November 2024 and the order was issued on 12 December 2024. A post-effective amendment was filed on 17 April 2026 and declared effective on 24 April 2026 (source: SEC EDGAR filing history for Figure Certificate Company, read September 2026).

Ongoing reporting follows from that registration. The company filed an annual report on Form 10-K for the 2025 fiscal year on 20 March 2026 and a quarterly report on Form 10-Q for the period ended 30 June 2026 on 14 August 2026.

History

YLDS came out of the Figure group's work on the Provenance Blockchain, a Cosmos-based network built for financial assets. Rather than launch a token and seek a regulatory characterization afterward, the issuer registered the instrument first: the S-1, the Investment Company Act registration and the exemptive application were all filed before the product traded.

That sequence produced an unusual object. The certificate is a security with a prospectus, a maturity date and an SEC-registered issuer, and it is also a bearer-style ledger entry that can move p2p trading style between wallets and settle on an alternative trading system. Most tokenized-security designs pick one or the other.

Risks and what to watch

Rate risk is built in rather than hidden. The return is SOFR less 35 basis points with a zero floor, so it falls when short-term dollar rates fall and it does not compensate for anything else. The floor protects against a negative rate, not against a low one.

Securities-law eligibility limits who can hold it and where. Access runs through Figure Markets, and secondary trading runs through a regulated alternative trading system, which means kyc onboarding and jurisdictional restrictions rather than the open listing pattern of a payment stablecoin.

Liquidity is a genuine question. Surrender at face amount plus accrued interest is available from the issuer, but the settlement windows in the August 2026 supplement run out to 10 days for some methods. A holder who needs same-day dollars is relying on secondary market depth, which for a registered certificate is thinner than for a large fiat backed stablecoin.

Chain risk applies to the ledger, not to the claim. The certificate exists across several networks, and an outage or a bug on one of them affects transfers there without changing what the issuer owes.

Frequently asked questions

Is YLDS a stablecoin?

Not legally. Its prospectus describes it as interest-bearing debt securities issued by a face-amount certificate company registered under the Investment Company Act of 1940. It behaves like a dollar-denominated token but it is a registered security.

What interest does YLDS pay?

Overnight SOFR less 35 basis points, with a minimum rate of 0.00%. Interest accrues and is credited daily and is paid monthly in US dollars, reinvested automatically unless the holder opts out.

Can you redeem YLDS?

Yes. The prospectus allows surrender at any time at the face amount of $0.01 per certificate plus accrued interest, with no surrender charges. Settlement timing depends on the method used.

Which blockchains does YLDS use?

Primarily the Provenance Blockchain, with support for Solana, Stellar, Avalanche and Sui, according to the prospectus.

Where can you buy YLDS?

Through Figure Markets, with secondary transfers on approved blockchains and on a regulated alternative trading system. See Exchanges for how the venues RampAtlas tracks compare on onboarding and fees.