OKG Research: BTC fell sharply, SEC released YLDS to open the era of stablecoin returns | Wall Street on the chain #04

The U.S. Securities and Exchange Commission (SEC) approved Figure Markets to launch its first interest-bearing stablecoin, YLDS, marking the recognition of crypto financial innovation by US regulators and also heralding the transformation of stablecoins from simple payment tools to compliant income assets. This will greatly expand the application scenarios of stablecoins, making it expected to become the next field to attract large-scale institutional investment after Bitcoin.

Why does the SEC approve YLDS?

In 2024, Tether's annual profit reached US$13.7 billion, far exceeding Mastercard. Its profits are mainly derived from investment returns from reserve assets (U.S. Treasury bonds), but these returns do not benefit users. Interest-bearing stablecoins seize this pain point and allow holders to directly share their returns and achieve "revenue democratization" by tokenizing the income rights of the underlying assets.

<code>Tether的财务报告（2024）</code>

Although interest-bearing stablecoins will reduce the profits of issuers, their high appeal is undoubtedly. Against the backdrop of global economic instability and high inflation, the demand for stable-yield products continues to grow. Products like YLDS are naturally favored by both stability and high returns.

However, the key to the SEC's approval of YLDS is its compliance. The structure of YLDS is similar to traditional fixed income products, clearly belongs to the category of "securities", complies with existing securities regulations, and bypasses regulatory disputes. This provides a clear basis for SEC regulation.

YLDS' approval shows that the US's crypto-regulatory attitude is positive and is shifting from "passive defense" to "active guidance." But this cannot immediately resolve the regulatory dilemma faced by traditional stablecoins such as USDT, and ultimately, we still have to wait for the US Congress to pass the stablecoin regulatory bill.

YLDS distributes revenue through smart contracts and adopts a strict KYC mechanism, reducing regulatory concerns about anonymity. Its compliance design provides reference for other similar projects. In the future, we may see more compliant interest-bearing stablecoins and promote the improvement of global interest-bearing stablecoins regulation. Hong Kong, Singapore and other places may need to adjust the existing regulatory system, or include interest-bearing stablecoins in the scope of tokenized securities supervision by restricting the types of underlying assets.

The rise of interest-bearing stablecoins will accelerate the institutionalization of the crypto market

SEC approved YLDS, which means that stablecoins will have the dual attributes of "payment tool" and "revenue tool", accelerating the institutionalization and dollarization of the crypto market.

Traditional stablecoins lack interest income, and institutions only use them as short-term liquidity tools. Interest-bearing stablecoins can generate stable returns and increase capital turnover through on-chain transactions, which has significant advantages in capital efficiency and settlement capabilities. After YLDS is approved, it will further enhance institutional investors' acceptance of such stablecoins.

The large-scale influx of institutional funds will promote the rapid growth of the interest-bearing stablecoin market. OKG Research predicts that in the next 3-5 years, interest-bearing stablecoins will account for 10-15% of the stablecoin market, becoming another crypto asset category that attracts institutional attention after BTC.

<code>Tether的财务报告（2024）</code>

The rise of interest-bearing stablecoins will consolidate the dominance of the US dollar in the crypto world. At present, the income of interest-bearing stablecoins mainly comes from investing in US bonds, blockchain pledge rewards or structured strategies. Although USDe was successful in 2024, we believe that interest-bearing stablecoins backed by U.S. bonds will remain the first choice for institutional investors.

Although the global trend of de-dollarization accelerates, the digital on-chain world continues to move closer to the US dollar. The SEC's approval of YLDS indicates that US regulators have raised a green light for US debt-based interest-bearing stablecoins, which will attract more similar projects to emerge. Although the income model and reserve assets of interest-bearing stablecoins will be diversified in the future, US bonds will still occupy an important position as risk-free assets.

Conclusion

The approval of YLDS is a compliance breakthrough in crypto innovation and a milestone in financial democratization. It proves the market's eternal demand for "money to make money". With the improvement of regulation and the influx of institutional funds, interest-bearing stablecoins will reshape the stablecoin market and enhance the dollarization trend of crypto financial innovation. However, it is necessary to balance innovation and risks to ensure the healthy development of interest-bearing stablecoins.

The above is the detailed content of OKG Research: BTC fell sharply, SEC released YLDS to open the era of stablecoin returns | Wall Street on the chain #04. For more information, please follow other related articles on the PHP Chinese website!