SEC Faces Application for Issuance of Interest-Bearing Stablecoin by Financial Services Entity
San Francisco-based financial services company Figure aims to introduce an interest-bearing stablecoin pegged to the penny. As per a registration statement submitted to the U.S. Securities and Exchange Commission (SEC) in October.
In the proposed setup, a subsidiary named Figure Certificate Company will issue “Figure Transferable Certificates” at $0.01 each, accruing daily simple interest credited to the holder. Monthly payouts in dollars. Automatically reinvested unless opted out, are planned for the accrued interest. These certificates, utilizing the Provenance Blockchain, are set to mature 20 years from the issuance date and. If approved by the SEC, will be available on Provenance.
Figure envisions these certificates as stablecoin alternatives. Offering interest through investments in fixed-income and corporate debt securities, commercial paper, and foreign securities. The company aims to position the certificates as not only stablecoin alternatives but also as a settlement currency and a payment rail.
Clever Robot News Desk 25th January 2024
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