👉👉👉 #blockchain Startup Figure Technologies Seeks US Regulatory Approval for Interest-Bearing #stablecoin
Figure Technologies, a financial technology company founded by former #SOFI Technologies CEO Mike Cagney, is seeking approval from U.S. regulators to launch an interest-bearing stablecoin. If approved, Figure would become the first company to offer a stablecoin regulated as a security in the United States. The company filed a draft registration statement with the Securities and Exchange Commission (SEC) in October under the subsidiary name Figure Certificate Co.
The stablecoin is planned to be registered as "face-amount certificates," a type of fixed-income security, and issued using blockchain technology. Once approved, it will be available to both retail and institutional investors in the U.S. Figure Markets, the digital asset arm of Figure, is reportedly seeking to raise $50 million at a valuation of $250 million, with Jump Crypto potentially being considered as a lead investor.
Unlike traditional stablecoins pegged at a 1:1 ratio with the U.S. dollar, Figure's stablecoin will be redeemable at a value of 1 cent per certificate. Interest will accrue daily and be paid monthly to stablecoin holders, and the interest will be derived from reserves consisting of treasury securities, commercial paper, corporate debt, and other assets. The stablecoin is intended to be an alternative for payments and transaction settlements, offering yield backed by highly liquid, investment-grade assets.
It's important to note that approval for Figure's proposal is not guaranteed, and the application process is likely to contribute to ongoing debates on how stablecoins should be regulated in the U.S. President Joe Biden has identified oversight of the stablecoin sector as a priority, and Figure's initiative adds to the evolving landscape of digital assets and financial products.
Source - Cryptonews.com