KEY TAKEAWAYS
- Sui partners with Figure Certificate Company to launch YLDS, a yield-bearing security, on its blockchain.
- YLDS offers a compliant method for digital dollars to generate yield, backed by treasury securities.
- This collaboration aims to democratize access to institutional-grade financial products on Sui.
- Figure and Sui explore further integration opportunities, including using SUI as collateral in lending.
Sui has announced a strategic partnership with Figure Certificate Company (FCC), a subsidiary of Figure Technology Solutions, Inc., to deploy YLDS, an SEC-registered yield-bearing security, natively on the Sui blockchain. This collaboration aims to expand access to regulated financial products within the Sui ecosystem, following Figure’s recent Nasdaq IPO under the ticker FIGR.
YLDS is a debt security registered with the SEC, backed by short-term treasury securities and repurchase agreements involving treasury securities. It offers a yield of SOFR minus 35 basis points, with daily accrual and monthly payments. Available to both individuals and institutions, YLDS facilitates instant peer-to-peer transfers and provides 24/7 liquidity, offering a compliant method for digital dollars to move and generate yield.
Expanding Regulated DeFi Opportunities
The partnership is part of a broader initiative to introduce SEC-registered, yield-bearing security tokens across multiple blockchain networks. Mike Cagney, co-founder and Executive Chairman of Figure, stated that issuing YLDS on Sui represents a step towards democratizing access to institutional-grade financial products by removing traditional intermediaries.
Evan Cheng, Co-Founder & CEO of Mysten Labs, the original contributor to Sui, highlighted that bringing YLDS to Sui marks a significant upgrade for regulated DeFi. He emphasized that institutions can access compliant and dynamic assets with the speed and security that Sui provides.
Integration with Sui’s Financial Infrastructure
Figure’s YLDS security token is designed to meet the standards of public reporting companies while introducing yield-bearing functionality for on-chain users. The native issuance on Sui allows developers, institutions, and users to access a regulated stablecoin with built-in utility for composability and scalability. This setup provides a direct fiat on- and off-ramp for Sui users, enabling access to USD without relying on traditional crypto exchanges.
The partnership initially focuses on Sui’s leading liquidity layer, DeepBook, which is part of the Sui Stack and the ecosystem’s largest venue for SUI trading. DeepBook’s upcoming margin trading system will utilize an isolated stablecoin lending pool that generates yield from trading activity, borrowing fees, and liquidation events. YLDS will serve as a foundational yield layer, where stablecoins will swap into YLDS natively on Sui to maximize capital efficiency.
This announcement marks the first step in a broader strategic partnership between Figure Technologies and Sui. The two entities are also exploring additional collaborative opportunities, including the potential integration of the SUI token as a collateral asset in Figure’s lending platform.
For more information, the announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
Sui’s partnership with Figure Certificate Company to launch the YLDS security token on the Sui blockchain signifies a strategic move to integrate regulated financial products into the DeFi ecosystem.
A recent industry report highlights a transformative shift toward more streamlined, rules-based regulation in SEC-registered digital assets, which is fostering significant institutional adoption. This aligns with the deployment of YLDS, a regulated security token, expanding the reach of compliant DeFi products.
Recent industry research suggests that yield-bearing security tokens, particularly those tied to stablecoins, are expected to significantly impact DeFi markets by combining stability with yield generation. This supports the introduction of YLDS on Sui, which aims to offer a compliant method for digital dollars to move and generate yield.
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