What is YLDS?
Learn why YLDS was created on the Provenance Blockchain, how it provides stable yield, and what it means for you.
YLDS is a yield-bearing digital security issued by Figure Digital Asset Registration and Transfer Agent (DART), also known as a tokenized deposit share, running on the Provenance Blockchain. Designed to represent a 1-to-1 interest in a deposit account at an FDIC-insured U.S. depository institution, YLDS is backed by funds held in this account, making it redeemable 1:1 for USD, plus any accrued and unpaid interest.
Information regarding YLDS, including its terms and the underlying assets, is made available through Figure Markets to qualified investors.
The Figure Markets Alternative Trading System (ATS) is a regulated platform that enables the secondary trading of digital asset securities like YLDS. This provides a compliant and liquid venue for investors to buy and sell positions. The ATS integrates directly with Provenance Blockchain, creating a seamless on-chain settlement experience for transacting in registered digital assets.
YLDS transforms on-chain treasury and collateral management
Figure developed YLDS to bridge the gap between the security of traditional banking and the efficiency of blockchain technology. The goal is to provide a stable, yield-bearing, on-chain asset that institutional participants can trust. Digital securities like YLDS inherit the speed and transparency of public blockchains to bring about transformative benefits:
- Stable and Yield-Bearing: Combines 1:1 backing with pass-through interest from an FDIC-insured deposit account.
- On-Chain & Transparent: All transfers are recorded on the Provenance Blockchain public ledger.
- Available 24/7/365: Transfer YLDS tokens between wallets at any time.
- Instant Settlement: Transfers settle with the speed and low cost of the underlying blockchain.
Before YLDS, investors seeking on-chain yield on dollar-equivalent assets often had to choose between non-yield-bearing stablecoins or DeFi lending protocols with inherent smart contract risks. Managing treasury with traditional bank deposits kept assets off-chain, limiting their utility. YLDS provides the security of a regulated structure with the functionality of a digital asset.
YLDS makes institutional deposits programmable, providing investors and developers the ability to build sophisticated financial products on a compliant and secure foundation.
How to access YLDS
Qualified institutional and accredited investors can apply for an account with Figure Markets to mint and redeem YLDS directly from the underlying deposit account.
Developers can add support for YLDS within their applications on the Provenance Blockchain:
- Applications can leverage YLDS as a stable, yield-bearing form of on-chain collateral or as a core treasury asset.
- Developers can integrate with the Figure Markets ATS APIs to create applications that interact with the secondary market for YLDS and other digital asset securities.