US Crypto Startup Seeks SEC Approval for Interest-Bearing Stablecoin

US Crypto Startup Seeks SEC Approval for Interest-Bearing Stablecoin

A U.S. crypto startup is seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch an interest-bearing stablecoin. The startup, Figure Technologies Inc., aims to offer the first stablecoin regulated as a security in the United States. If approved, the stablecoin, registered as “face-amount certificates,” will be available to both retail and institutional investors. With this move, Figure Technologies intends to provide an alternative to existing stablecoins like tether and USDC. The startup also plans to raise $50 million at a valuation of $250 million to support its digital asset arm’s operations.

Figure Technologies’ Draft Registration Statement

Figure Technologies, a US blockchain and lending startup, has recently submitted a draft registration statement to the US Securities and Exchange Commission (SEC) seeking approval for the issuance of an interest-bearing stablecoin. This proposed stablecoin will serve as an alternative to existing stablecoins such as tether and USDC. The company aims to create the first stablecoin regulated as a security in the United States, offering retail and institutional investors the opportunity to invest in a stable digital asset.

Background

Figure Technologies Inc., a burgeoning blockchain and lending startup, has taken the initiative to approach the US Securities and Exchange Commission (SEC) in their bid to launch an interest-bearing stablecoin. This digital token, which will be registered as “face-amount certificates,” is intended to be accessible to both retail and institutional investors within the United States. By introducing this new stablecoin, Figure Technologies seeks to provide an innovative and secure alternative to existing stablecoins, thereby revolutionizing the crypto market.

Startup Seeks SEC Approval for Interest-Bearing Stablecoin

In an effort to differentiate itself from other stablecoins, Figure Technologies has decided to seek regulatory approval from the US Securities and Exchange Commission (SEC) for the issuance of its interest-bearing stablecoin. By actively pursuing the necessary regulatory framework, Figure Technologies aims to set a precedent in the industry and build a foundation of trust with investors. Obtaining SEC approval will not only enhance the legitimacy of Figure Technologies as a player in the blockchain space, but will also provide investors with unique opportunities within the cryptocurrency market.

Stablecoin as an Alternative to Existing Stablecoins

With the increasing popularity of stablecoins such as tether (USDT) and USD Coin (USDC), Figure Technologies sees an opportunity to innovate and provide users with a more attractive alternative. These stablecoins, while offering stability and convenience, lack the potential for profit generation. By introducing an interest-bearing stablecoin, Figure Technologies aims to address this limitation and provide users with the ability to earn yields on their investments while still enjoying the stability and convenience offered by stablecoins.

Figure Markets Plans to Raise $50 Million

In collaboration with Jump Crypto, Figure Markets, the digital asset arm of Figure Technologies, has announced its intention to raise $50 million in funding. This funding round is expected to value Figure Markets at $250 million and will primarily be used to support the operations of the digital asset arm. This strategic collaboration will provide Figure Markets with the necessary resources to further develop and promote the interest-bearing stablecoin, solidifying its position as a key player in the cryptocurrency market.

Collaboration with Jump Crypto

Figure Technologies’ collaboration with Jump Crypto is a testament to the startup’s commitment to innovation and growth. By partnering with Jump Crypto, a prominent player in the blockchain and cryptocurrency industry, Figure Technologies aims to leverage their expertise and resources to maximize the potential of the interest-bearing stablecoin. This collaboration not only strengthens Figure Technologies’ position in the market, but also ensures that the stablecoin is developed with the highest standards of security and reliability.

Benefits of the Proposed Stablecoin

The proposed interest-bearing stablecoin by Figure Technologies offers several key benefits compared to existing stablecoins. Firstly, it provides investors with the opportunity to earn yields from highly liquid, investment-grade assets that can be held in a digital format. This feature opens up new possibilities for investors seeking to generate returns on their assets while still enjoying the stability and convenience provided by stablecoins. Additionally, the proposed stablecoin offers the liquidity and flexibility required for peer-to-peer transactions, making it an ideal solution for individuals and businesses alike.

Registration of Offering for Yield-Backed Assets

In addition to the interest-bearing stablecoin, Figure Technologies has also filed for the registration of an offering that targets investors interested in earning yields with assets held in a digital format. This offering will further augment the value proposition of Figure Technologies, providing investors with a diverse range of investment options within the cryptocurrency market. By expanding their product offerings, Figure Technologies aims to cater to a wider range of investor preferences and needs, establishing itself as a comprehensive and forward-thinking blockchain and lending startup.

Conclusion

Figure Technologies’ draft registration statement for the interest-bearing stablecoin represents a significant milestone in the company’s journey towards revolutionizing the crypto market. By introducing a regulated stablecoin that offers investors the opportunity to earn yields, Figure Technologies aims to address the limitations of existing stablecoins and provide a more attractive investment option. With its strategic collaboration with Jump Crypto and its commitment to regulatory compliance, Figure Technologies is well-positioned to reshape the cryptocurrency landscape and create new opportunities for investors.