Figure’s YLDS Security Token Launches on Sui, Enhancing U.S. DeFi Liquidity

Figure Technologies has partnered with Sui to launch its flagship YLDS security token, aiming to enhance the U.S. DeFi landscape. Following Figure’s recent Nasdaq IPO, this move signals a strategic shift towards expanding access to regulated financial products within the Sui ecosystem, according to the Sui Foundation.

YLDS: A New Era for Regulated DeFi

YLDS is an SEC-registered debt security backed by short-term treasury securities, offering a yield of SOFR minus 35 basis points with daily accrual and monthly payments. This security is available to both individual and institutional investors, enabling instant peer-to-peer transfers and 24/7 liquidity. The deployment of YLDS on Sui marks a significant step in democratizing access to institutional-grade financial products by removing traditional intermediaries.

Mike Cagney, co-founder and Executive Chairman of Figure, emphasized that issuing YLDS on Sui is part of a broader initiative to deploy yield-bearing security tokens across multiple blockchain networks. This initiative aims to level the playing field and provide broader access to compliant financial products.

Sui’s Role in the U.S. DeFi and RWA Sectors

Sui’s collaboration with Figure is part of a series of strategic partnerships that are propelling the platform to the forefront of the U.S.-based real-world asset (RWA) and DeFi sectors. The introduction of YLDS on Sui’s network integrates compliant, scalable infrastructure that supports the next generation of digital financial services.

Evan Cheng, Co-Founder & CEO of Mysten Labs, the original contributor to Sui, highlighted that YLDS represents a significant upgrade for regulated DeFi, offering institutions access to compliant and dynamic assets with the security and speed unique to Sui.

Enhancing DeepBook’s Margin Trading

The partnership between Figure and Sui initially focuses on Sui’s leading liquidity layer, DeepBook. This platform, a key component of the Sui Stack, is the ecosystem’s largest venue for SUI trading. DeepBook’s forthcoming 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 the foundational yield layer, optimizing capital efficiency through native swaps on Sui.

Future Collaborations and Integrations

This launch is just the beginning of a broader strategic partnership between Figure and Sui. The two entities are exploring further collaborative opportunities, including the potential integration of the SUI token as a collateral asset in Figure’s lending platform. This could provide direct fiat on- and off-ramp access for Sui users without relying on traditional crypto exchanges.

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