Blockchain Startup Figure Technologies Seeks US Regulatory Approval for Interest-Bearing Stablecoin
Financial technology company Figure Technologies is seeking approval from US regulators to introduce an interest-bearing stablecoin.
Founded by former SoFi Technologies CEO Mike Cagney, if successful, Figure will become the first company to offer a stablecoin regulated as a security within the United States, Bloomberg reported Monday.
In October, Figure filed a draft registration statement with the Securities and Exchange Commission (SEC) under the subsidiary name Figure Certificate Co.
The registration filing reveals that Figure plans to register the stablecoin as “face-amount certificates,” a type of fixed-income security, and intends to issue it using blockchain technology.
Upon approval, the stablecoin will be available to both retail and institutional investors in the US.
Figure Markets, the digital asset arm of Figure, is reportedly seeking to raise $50 million at a valuation of $250 million, excluding the amount raised.
Jump Crypto is potentially being considered as a lead investor for this funding round, although both Figure and Jump declined to comment on the matter.
Currently, the market for stablecoins, which are tokens pegged to assets like the US dollar, is largely dominated by Tether Holdings Ltd.’s USDT, with $95 billion in circulation, followed by Circle Internet Financial’s USD Coin.
These stablecoins do not offer interest and are primarily used by cryptocurrency traders for settling transactions or transferring assets between exchanges.
Many issuers of stablecoins outside the US have refrained from offering interest-bearing products in the country due to concerns about potential SEC regulations classifying them as securities.
Figure, on the other hand, anticipates that its stablecoin will be viewed as an
Read more on cryptonews.com
