BitGo adds custody support for SEC-registered yield-bearing token YLDS

BitGo Holdings, Inc. (NYSE: BTGO) announced that its subsidiary BitGo Bank & Trust, N.A., an Office of the Comptroller of the Currency-regulated digital asset trust bank, now offers qualified custody for YLDS, a yield-bearing digital security issued by Figure Certificate Company, a subsidiary of Figure Technology Solutions, Inc. (Nasdaq: FIGR; OPEN: FGRS).

YLDS is structured as a tokenized face-amount certificate and registered with the Securities and Exchange Commission as a fixed-income debt security. The security accrues yield daily at SOFR minus 35 basis points. Holders may redeem yield monthly in U.S. dollars or in additional YLDS, with no staking or lock-up requirement, subject to applicable offering documents.

According to the press release, YLDS held through BitGo is maintained with institutional-grade controls and offline key management, and is designed to continue accruing its designated yield while in custody.

"Institutional adoption of digital assets depends on infrastructure that meets the standards of regulated financial markets," said Mike Belshe, CEO and co-founder of BitGo.

Mike Cagney, executive chairman and co-founder of Figure, said YLDS "provides stable yield with the liquidity and transferability of a stablecoin."

Unlike a payment stablecoin, YLDS is registered as a fixed-income security and uses blockchain technology to support transfers and settlement. It is unsecured and solely backed by the assets of Figure Certificate Company. The SEC's registration of YLDS does not constitute approval by the agency.

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