SEC Approves First Interest-Bearing Stablecoin YLDS, Opening a New Era of Stablecoin Yields

Recently, the U.S. Securities and Exchange Commission (SEC) approved the first interest-bearing stablecoin YLDS launched by Figure Markets. This move not only demonstrates the recognition of U.S. regulatory agencies for innovations in crypto finance but also indicates that stablecoins are evolving from simple payment tools into compliant yield-bearing assets. This could open up broader development space for the stablecoin sector, making it another innovative area capable of attracting large-scale institutional funds after Bitcoin.

Analysis of the Reasons for SEC Approval of YLDS

In 2024, a well-known stablecoin issuer achieved an annual profit of up to $13.7 billion, surpassing the profit levels of traditional financial giants. This profit mainly comes from the investment returns of reserve assets (such as U.S. Treasury bonds), but is unrelated to ordinary holders. The emergence of interest-bearing stablecoins specifically targets this breakthrough.

The core of interest-bearing stablecoins lies in the "redistribution of asset income rights". While maintaining stability, it tokenizes the income rights of underlying assets, allowing holders to directly enjoy the returns. This "hold-and-earn" model makes income from funds accessible without thresholds, achieving "democratization of returns".

The reason YLD has received SEC approval is mainly because it complies with current U.S. securities regulations. Due to its structure being similar to traditional fixed-income products, interest-bearing stablecoins clearly fall under the category of "securities," thus avoiding the core controversy of SEC regulation. This also provides a reference for other similar projects seeking regulatory approval.

Although the approval of YLDS indicates that the U.S. cryptocurrency regulatory attitude continues to improve, it cannot change the regulatory dilemmas faced by traditional stablecoins in the short term. Industry insiders expect that the U.S. stablecoin regulatory bill may gradually come into effect within the next 1 to 1.5 years.

The Impact of Interest-bearing Stablecoins

The SEC's approval of YLDS signals that stablecoins may evolve from a "cash substitute" into a new type of asset that combines the dual attributes of a "payment tool" and a "yield tool." This will accelerate the institutionalization and dollarization process of the crypto market.

Interest-bearing stablecoins not only generate stable returns but also enhance capital turnover through intermediary-free and 24/7 on-chain transactions. Some research institutions indicate that hedge funds and asset management firms have begun to incorporate stablecoins into their cash management strategies. The approval of YLDS will further increase institutional investors' acceptance and participation.

Analysts predict that interest-bearing stablecoins will experience explosive growth in the next 3-5 years, capturing about 10-15% of the stablecoin market, becoming another category of crypto assets that can attract significant institutional attention and investment after Bitcoin.

The rise of interest-bearing stablecoins will further consolidate the dominance of the US dollar in the crypto world. While the physical world is accelerating the process of de-dollarization, the digitized on-chain world continues to gravitate towards the US dollar. This trend is difficult to reverse in the short term, as there are currently no more alternative options besides dollar-denominated assets represented by US Treasury bonds for tokenized innovations and the crypto financial market.

Conclusion

The approval of YLDS is not only a compliance breakthrough in crypto innovation but also a milestone in the democratization of finance. It reveals the market's eternal demand for "money making money." With the improvement of regulatory frameworks and the influx of institutional funds, interest-bearing stablecoins could reshape the stablecoin market and enhance the dollarization trend of crypto financial innovation. However, this process also needs to balance innovation and risk to avoid repeating past mistakes. Only in this way can interest-bearing stablecoins truly achieve the goal of providing stable income for more people.