A Financial Services Company Applies to Launch an Interest-Bearing Stablecoin
A San Francisco-based financial services company called Figure has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to establish a subsidiary named Figure Certificate Company. The subsidiary plans to issue “Figure Transferable Certificates,” which are digital asset securities priced at $0.01 per certificate. These certificates will accrue daily interest that is credited to the holder and paid out monthly in dollars, which can be reinvested in new certificates unless the holder chooses otherwise. The certificates will mature after 20 years.
Figure’s Use of Provenance Blockchain
Figure utilizes the open-source Provenance Blockchain for its various financial offerings, including loan origination, equity management, private fund, and payment services. Provenance manages over $9 billion worth of real-world assets on its blockchain platform.
The Potential of the Certificates
If approved by the SEC, the Figure Transferable Certificates will also be launched on Provenance. Certificate holders will earn interest from the investments made by Figure Certificate Company in fixed-income securities, corporate debt securities, commercial paper, and foreign securities. Figure sees these certificates as stablecoin alternatives and envisions them being used for settlement purposes and as a payment rail.
Hot Take: A New Era for Stablecoins
This application by Figure demonstrates the growing interest in creating stablecoins that offer interest-bearing features. By pegging the certificates to the penny and allowing them to accrue daily interest, Figure aims to provide an attractive alternative to existing stablecoins that do not generate any yield. If approved, this development could pave the way for more innovative approaches to stablecoin design in the future.
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