Financial technology company Figure Technologies, led by former SoFi Technologies CEO Mike Cagney, is making waves by pursuing approval from US regulators to launch an innovative interest-bearing stablecoin. If successful, Figure will achieve a significant milestone in becoming the first entity to introduce a stablecoin regulated as a security within the United States, as reported by Bloomberg.
Regulatory Progress and Strategic Plans
In a strategic move, Figure submitted a draft registration statement to the Securities and Exchange Commission (SEC) in October through its subsidiary, Figure Certificate Co. This filing divulged Figure’s intention to classify the stablecoin as “face-amount certificates,” a form of fixed-income security, with plans to leverage blockchain technology for its issuance. Once sanctioned, the stablecoin will be open to both retail and institutional investors in the US.
“Figure is pioneering the path for novel stablecoin offerings in the US market, presenting a compelling alternative for financial transactions and investments.”
– Bloomberg
- Figure Markets, the digital asset wing of Figure, is reportedly aiming to raise $50 million at a valuation of $250 million, a move that could reshape the industry landscape.
- Jump Crypto is being considered as a prominent investor for this financing round, underlining the high stakes and potential impact of Figure’s initiatives.
- The stablecoin sector, dominated by Tether Holdings Ltd.’s USDT and Circle Internet Financial’s USD Coin, is ripe for disruption by Figure’s innovative approach.
Unlike conventional stablecoins, which are mainly used for transaction settlements, Figure’s stablecoin promises unique features like daily interest accumulation, monthly payouts, and a backing of diverse liquid assets to ensure investor confidence and security.
“Figure’s stablecoin design showcases a remarkable departure from traditional 1:1 pegged stablecoins, introducing a new paradigm for yield generation and digital asset utilization.”
– Financial Times
Figure’s proposal, although ambitious, could spark significant debates around stablecoin regulations in the US. While uncertainties persist regarding approval, the potential approval process might trigger essential dialogues on regulatory frameworks within the crypto sphere.
Circling back to President Joe Biden’s recent emphasis on stablecoin supervision, the industry anticipates heightened scrutiny and potential shifts in the regulatory landscape. Notably, Circle’s covert IPO filing and Figure’s diversified product lineup signals a transformative phase in the realm of digital assets and stablecoin offerings.
