Figure Technologies Launches SEC-Registered YLDS Token on Sui Blockchain
Figure Technologies has deployed its SEC-registered yield-bearing security token, YLDS, on the Sui blockchain through a partnership with Figure Technology Solutions. This strategic collaboration marks a significant milestone in regulated asset tokenization. The integration positions Sui as a premier platform for compliant digital securities.
YLDS is an SEC-registered debt security backed by short-term treasury securities and repurchase agreements. Token holders receive yields calculated at SOFR minus 35 basis points with daily accrual. Interest payments occur monthly, providing investors with consistent returns on their holdings. Both individual and institutional investors can access this regulated financial product.
How YLDS Token Integration Transforms Sui’s Ecosystem
The partnership brings YLDS natively to DeepBook, Sui’s leading limit order book, to power margin trading capabilities. Stablecoins on Sui will automatically convert into YLDS, ensuring continuous liquidity and direct access to fiat rails. This mechanism maximizes capital efficiency for users. YLDS serves as a foundational yield layer where stablecoins convert natively on Sui.
The integration will eventually enable users to access fiat on-ramp and off-ramp capabilities directly on Sui, allowing them to use USD without relying on traditional crypto exchanges. This feature streamlines the bridge between traditional finance and decentralized systems.
Regulatory Compliance Meets Blockchain Innovation
Figure co-founder Mike Cagney emphasized that issuing YLDS on Sui begins a broader initiative to deploy SEC-compliant security tokens across multiple blockchains. The deployment shows how regulated financial products can operate on public blockchain infrastructure, removing traditional barriers while upholding compliance standards.
The SEC registration provides investors with regulatory protections. Transparency requirements ensure that token holders understand the underlying assets. This framework builds trust between traditional finance participants and blockchain technology.
Strategic Partnership Between Figure Technologies and Sui
This announcement represents the first step in an extensive strategic partnership between Figure Technologies and Sui. Both organizations are exploring additional collaborative opportunities. The relationship extends beyond the initial YLDS deployment.
Figure Technologies brings extensive experience in financial technology and regulatory compliance. The company previously co-founded SoFi, demonstrating its track record in digital finance. Sui offers high-performance blockchain infrastructure suitable for complex financial applications. The combination creates a robust platform for regulated digital assets.
Bridging Traditional Finance with DeFi Through YLDS
The YLDS token creates a direct bridge between treasury-backed securities and decentralized finance protocols. Traditional investors gain exposure to blockchain technology through familiar asset classes. DeFi users access regulated yield products without leaving the blockchain ecosystem.
YLDS provides exposure to risk-free rates by tracking short-term treasury performance. Most stablecoins maintain a fixed one-dollar peg without yielding returns. YLDS offers an alternative that generates income while maintaining regulatory compliance. This addresses a significant gap in the stablecoin market.
Capital Efficiency and Market Implications
The automatic conversion of stablecoins into YLDS offers a more efficient method for users to engage with yield-bearing investments. Users no longer have to manage their positions manually. The system optimizes capital deployment across the Sui ecosystem.
The deployment could influence how other blockchains approach regulated assets. Success on Sui could encourage similar integrations across other networks, increasing competitive pressure to support compliant financial products.
Conclusion
Figure Technologies’ YLDS deployment on Sui represents meaningful progress in regulated blockchain finance. The SEC-registered token combines treasury-backed security with blockchain efficiency. This collaboration strengthens Sui’s position in asset tokenization while providing investors with compliant yield opportunities.
