Interest-Bearing Stablecoin: Figure Technologies Seeks Regulatory Approval
Figure Technologies, a financial technology company, is seeking US regulatory approval to launch an interest-bearing stablecoin.Figure Technologies, a blockchain startup, is seeking regulatory approval in the US for its stablecoin that earns interest.
š Last updated: January 23, 2024 00:50 EST | ā 2 min read | š Source
Figure Technologies, a financial technology company founded by former SoFi Technologies CEO Mike Cagney, is making waves in the cryptocurrency world with its revolutionary approach. The company is currently seeking approval from US regulators to introduce an interest-bearing stablecoin, a move that has the potential to reshape the stablecoin market.
The First Regulated Interest-Bearing Stablecoin in the US
If approved, Figure will become the first company to offer a stablecoin regulated as a security within the United States. Bloomberg reported on this groundbreaking development, providing a glimpse into the future of cryptocurrencies.
Implications of Figureās Stablecoin
Figure plans to register the stablecoin as āface-amount certificates,ā a type of fixed-income security, and issue it using blockchain technology. This means that the stablecoin, upon approval, will be available to both retail and institutional investors in the US. It offers a unique value proposition as an alternative to existing stablecoins for payments and transaction settlements.
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š Figure Markets Seeking $50 Million Funding
In addition to the interest-bearing stablecoin, Figure Markets, the digital asset arm of Figure, is reportedly seeking to raise $50 million at a valuation of $250 million. The strategic funding round aims to propel Figureās growth in the burgeoning cryptocurrency market. Potential investors include Jump Crypto, a prominent player in the industry.
The Market for Stablecoins
Currently, the stablecoin market is dominated by Tether Holdings Ltd.ās USDT, with $95 billion in circulation, followed by Circle Internet Financialās USD Coin. These stablecoins serve as a means of settling transactions and transferring assets between exchanges, but do not offer any interest to their holders.
Q&A: What Readers Might be Concerned About
Q: Is approval for Figureās proposal guaranteed?
A: No, approval for Figureās proposal is not guaranteed. The application process is likely to intensify debates on how stablecoins should be regulated in the US.
Q: How does Figureās stablecoin differ from other stablecoins?
A: Unlike most stablecoins that are pegged to the US dollar at a 1:1 ratio, Figureās stablecoin will be redeemable at a value of 1 cent per certificate. This unique approach sets it apart from its competitors.
Q: What assets back the interest payments?
A: According to the filing, the interest will be derived from reserves consisting of treasury securities, commercial paper, corporate debt, and other assets.
The Future of Stablecoins
Figureās ambitious proposal aligns with the growing interest in the cryptocurrency market and the potential for innovation within the stablecoin sector. With President Joe Biden prioritizing the sectorās oversight, stability and regulations are set to take center stage in the coming months.
Figureās Investment Offerings
In addition to the interest-bearing stablecoin, Figure is also planning to register an investment offering called Figure Installment Certificates. This product caters to investors interested in earning yields while holding digital assets, providing them with an attractive alternative to traditional investment options.
Wrapping Up and Share the Article
Figure Technologiesā pursuit of an interest-bearing stablecoin marks an exciting development in the cryptocurrency landscape. If approved, this innovative offering has the potential to revolutionize the way stablecoins operate and provide investors with enticing opportunities for growth and yield.
Stay tuned for updates on this groundbreaking development and donāt forget to share this article with your fellow crypto enthusiasts!
Reference List
- Ruholamin Haqshanas
- Nigeriaās CBN Greenlights CNGN Stablecoin Launch in February
- Perplexity Raises $73M Series B with Reported $520M Valuation for AI-Powered Search Engine
- Bitget Reaffirms Industry-Leading Reserve Strength with Latest PoR Ratio of 175%
- Follow Us on Google News
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