Startup Figure Technologies applies to launch an interest-bearing stablecoin in the US

The asset would be a certificate for a face-amount

23.01.2024 - 08:25

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3 min

What’s new? Figure Technologies, a blockchain and lending startup, has filed with the US Securities and Exchange Commission (SEC) to launch an interest-bearing stablecoin. Figure expects the product to be used as an alternative to existing stablecoins for payments. Buyers may be “interested in an instrument that provides yield backed by highly-liquid, investment-grade assets that can be held in a digital format, liquidated on short notice and used in peer-to-peer transactions,” Figure said in a statement.

Bloomberg’s material

What else is known? The approval will allow Figure to offer the first stablecoin regulated as a security in the US. The asset, available to both institutional and retail investors, will be a certificate for a face-amount, a type of fixed-income security.

Unlike most stablecoins with a value of $1 per coin, Figure will pay 1 cent per 1 certificate at redemption. This means that a $1 payment would require the transfer of 100 certificates.

Interest will accrue daily and be paid monthly. They will be derived from reserves that include Treasury bonds and corporate securities. Customers will be required to undergo the identification procedure (KYC) to deal with Figure’s assets.

Figure Technologies was founded by former SoFi Technologies CEO Mike Cagney in 2018 and uses its own private blockchain to create financial products. The company began negotiations with federal authorities to issue a compliant stablecoin back in November 2021.

Ripple CEO predicts clarity on US regulation of stablecoins this year

Brad Garlinghouse noted that “the stablecoin market has really surprised people in some ways in terms of solving a real need”

SoFi stopped working with cryptocurrencies at the end of last year, the decision was made against the background of increased control over the sector by banking regulators.

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