EDX Markets, an institutional digital asset trading and clearing firm, announced it has integrated YLDS — an SEC-registered, yield-bearing digital security issued by Figure Certificate Company — into its ecosystem as both an accepted collateral asset and a treasury holding.

Figure Certificate Company is a subsidiary of Figure Technology Solutions, Inc. (Nasdaq: FIGR; OPEN: FGRS). YLDS is described as the first SEC-registered yield-bearing digital security, though SEC registration does not imply SEC approval of the product or its issuer.

Under the arrangement, institutional clients of EDX Markets can post YLDS as collateral, while EDX will also hold YLDS on its own balance sheet as a treasury asset. YLDS are unsecured face-amount certificates backed solely by the assets of Figure Certificate Company and are not FDIC insured.

"Firms are looking for solutions that improve capital efficiency without compromising the regulatory standards, liquidity and operational resilience they expect," said Tony Acuña-Rohter, CEO of EDX Markets. "YLDS brings these attributes together in a regulated, yield-bearing asset that remains transferable and available around the clock."

Mike Cagney, Co-Founder and Executive Chairman of Figure, said exchange collateral was among the first intended use cases for YLDS at launch. "Institutions shouldn't have to choose between yield, liquidity and regulatory certainty, and with YLDS they don't," he said.

EDX Markets operates an institution-only trading venue paired with a central clearinghouse. Figure Technology Solutions, founded in 2018, uses the Provenance Blockchain for lending, capital markets, and asset tokenization, and its subsidiaries have processed over $23 billion in loans on-chain, according to the company.