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Report: US Crypto Startup Seeks to Launch an Interest-Bearing Stablecoin

Report: US Crypto Startup Seeks to Launch an Interest-Bearing Stablecoin

A U.S. blockchain and lending startup is seeking the U.S. Securities and Exchange Commission’s permission to issue an interest-bearing stablecoin. The startup said the digital token will be used as an alternative to existing stablecoins such as tether and USDC.

Figure Technologies’ Draft Registration Statement

A new blockchain and lending startup, Figure Technologies Inc., has reportedly approached the U.S. Securities and Exchange Commission (SEC) to launch an interest-bearing stablecoin. If approved, the stablecoins, which will be registered as “face-amount certificates,” will be available to both retail and institutional investors in the U.S.

According to a Bloomberg report, Figure Technologies aims to offer the first stablecoin that will be regulated as a security in the United States. The company’s draft registration statement, filed under the name of subsidiary Figure Certificate Co., said the stablecoin will be issued using blockchain technology.

In the meantime, Figure Markets, the digital asset arm of Figure Technologies, is reportedly planning to raise $50 million at a valuation of $250 million. The funds are expected to be raised in collaboration with Jump Crypto and will be used to support Figure Markets’ operations.

Touting the proposed stablecoin, Figure Technologies, which is led by Mike Cagney, the CEO, said its digital token will be used as an alternative to existing stablecoins such as USDT and USDC. The startup added:

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.

In addition to issuing stablecoins, Figure Technologies has also filed to register an offering that targets investors who are interested in earning yields with assets held in digital format, the Bloomberg report said.

What are your thoughts on this story? Let us know what you think in the comments section below.



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