Blockchain lending startup Figure Technologies is pursuing a novel path to launch the first SEC-regulated, interest-bearing stablecoin in the US. The move could pave the way for a new class of stablecoins with federal oversight if the issuance is approved.
Key Takeaways:
- Figure filed with SEC to register interest-paying stablecoin as a security
- Would be first such crypto asset approved for issuance under US regulations
- Seeks to offer yield alternative to existing stablecoins like Tether
- Backed by investment-grade reserves, redeemable at 1 cent per token
- Part of $250M funding round for Figure’s digital asset subsidiary
- Unclear if SEC will approve new framework for stablecoin issuance
The company, founded by former SoFi CEO Mike Cagney, submitted a draft registration with the SEC for the proposed Figure Certificate stablecoin. The filings outline plans to distribute the yield-generating stablecoins as so-called “face-amount certificates,” a type of fixed-income security.
If greenlit by the SEC, it would represent the first US-approved stablecoin paying interest to holders. Figure expects it to provide an appealing alternative to popular stablecoins like Tether for digital payments and transactions.
The coins would be backed by reserves including treasuries, commercial paper, and corporate debt. Interest would accrue daily and distribute monthly to holders after KYC verification.
The push for a regulated stablecoin comes amid document efforts in Washington to define clear oversight frameworks for the booming sector currently dominated by unregulated issuers like Tether.
Figure is also raising $50 million to fund operations around the issuance. While approval is uncertain, the move signals intensifying attempts to integrate stablecoin models into the US regulatory landscape.