--- title: "YLDS Review 2026: Figure's Yield-Bearing 'Stablecoin' Is a Registered Debt Certificate From a Thinly Capitalized Issuer Its Parent Supports" url: https://altstreet.investments/platforms/reviews/ylds kind: platform-review updated: 2026-10-16 description: "YLDS review 2026: Figure Certificate Company's yield-bearing 'stablecoin' is an unsecured, SEC-registered debt certificate paying SOFR minus 0.35%, with a statutory surplus under 1%, $994,000 of equity and parent support through September 2027." publisher: AltStreet (https://altstreet.investments) license: Public factual pages may be read, quoted and cited with attribution and a link. Bulk redistribution is not permitted. --- # YLDS Review 2026: Figure's Yield-Bearing 'Stablecoin' Is a Registered Debt Certificate From a Thinly Capitalized Issuer Its Parent Supports YLDS is a face-amount certificate issued by Figure Certificate Company, an SEC-registered subsidiary of Figure Technology Solutions: an unsecured, interest-bearing debt security with a $0.01 face amount, paying overnight SOFR minus 0.35% and surrenderable at any time. Its reserves were short Treasury bills and Treasury-backed repurchase agreements at June 30, 2026, KPMG audits its annual statements, and it paid out $762.8 million of surrenders in the first half of 2026. What the marketing leaves out is how little capital the issuer has of its own and who the holders are. At June 30, 2026, qualified assets exceeded the statutory reserve requirement by $4.2 million, GAAP equity was $994,000, and $477.5 million of the $556.0 million outstanding (85.9%) was classified as related-party holdings. The issuer relies on its parent, which committed in a June 30, 2026 letter to satisfy any obligations FCC cannot meet when due through September 30, 2027. AltStreet score: 65.3 (B+), scored October 16, 2026. Method: https://altstreet.investments/platforms | Field | Value | | --- | --- | | Platform | YLDS (Figure Certificate Company) | | What it is | SEC-Registered Face-Amount Certificate Company Issuing a Transferable, Interest-Bearing Digital Debt Security | | Asset class | Unsecured face-amount certificates of Figure Certificate Company, backed by its statutory reserves of U.S. Treasury bills and Treasury-collateralized repurchase agreements | | Website | ylds.com | | Review first published | October 16, 2026 | | Last updated | October 16, 2026 | | AltStreet relationship | None: no affiliate, sponsorship or partnership | ## The short version YLDS is marketed as a yield-bearing stablecoin, and the website says it will 'Settle at $1.00. Always.' Legally it is something older and narrower: a face-amount certificate, a debt security of a company registered under the Investment Company Act, unsecured and, in the prospectus's words, 'solely backed by the assets of Figure Certificate Company.' The structure carries specific protections. The Investment Company Act requires qualified assets at least equal to a reserve for the certificates plus $250,000 of capital, invested only in what a District of Columbia life insurer may hold; the SEC approved FCC's custody arrangements by order; FCC files KPMG-audited annual statements and unaudited quarterly reports with reserve schedules; and at June 30, 2026 its reserves were short Treasury bills and overnight Treasury repurchase agreements. Surrenders have run at volume: $762.8 million paid in the first half of 2026, $319.8 million of it to related parties. The weaknesses are standalone capital and the dependence that follows from it. At June 30, 2026 qualified assets of $561.9 million exceeded the $557.7 million reserve requirement by $4.2 million, while GAAP equity, which also nets $3.5 million of other liabilities, was $994,000. FCC lost $3.07 million in 2025 and $808,000 in the first half of 2026 and has been funded by its parent. That support is broader than paying invoices: a June 30, 2026 letter from Figure Technology Solutions, filed with the 10-Q, says the parent or its subsidiaries 'will satisfy, on a timely basis all liabilities and obligations of the Company that the Company is unable to satisfy when due' through September 30, 2027. The letter is addressed to FCC, ends on that date unless extended, and the filings do not say whether certificate holders could enforce it. Under stress, holders' recoveries would depend on what the assets realize, creditor rights and whether that support is delivered. Holdings are concentrated: $477.5 million of the $556.0 million outstanding was classified as related-party, and the parent separately reports $347.7 million of YLDS borrowed through Democratized Prime, its loan-collateralized lending marketplace, so the related-party figure is not by itself a measure of Figure's own invested capital. The website's 'principal-protected' and 'credit-line-backed liquidity' are not terms the prospectus uses; the prospectus says 'You could lose money,' and AltStreet located no credit facility in FCC's filings. - **85.9%** Share of YLDS classified as related-party certificate holdings at June 30, 2026: $477.5 million of $556.0 million face; third parties held $78.5 million directly. The parent separately reports $347.7 million of YLDS borrowed through Democratized Prime, so the filings do not show how much of the related-party balance is Figure's own capital. - **$4.2M** Qualified assets above the statutory reserve requirement at June 30, 2026 ($561.9 million against $557.7 million), about 0.75%, at amortized cost. At December 31, 2025 the surplus was $0.5 million on $329.0 million. This is a statutory measure; GAAP equity was $994,000. - **Sept 30, 2027** Date through which Figure Technology Solutions committed, in a June 30, 2026 letter to FCC, to satisfy any FCC liabilities and obligations FCC cannot meet when due. The filings do not address whether certificate holders could enforce it. - **3.55%** The YLDS rate on September 30, 2026 (SOFR of 3.90% minus 0.35%), a stated annual simple-interest rate paid monthly. The same day FOBXX, a government money fund, reported a 7-day net yield of 3.73%, an annualized trailing measure. Compare the two on the same date. - **$762.8M** Certificates surrendered and paid in the first half of 2026, $319.8 million of them to related parties. Surrenders are processed within 24 hours unless blockchain congestion or 'other technological reasons' delay them; wire or ACH proceeds can take up to 5 days. A working process at volume, not a test of an independent run. - **$200M** One overnight repurchase agreement with Hidden Road Partners CIV US LLC at June 30, 2026, about 36% of FCC's assets, collateralized by Treasuries. The rest was $82.4 million of UMB repo and $273.1 million of Treasury bills. Data note: Figures are from Figure Certificate Company's Form 10-Q for June 30, 2026 (unaudited, with the parent's support letter as Exhibit 99.1) and Form 10-K for 2025 (audited, CIK 1974395), the prospectus dated April 24, 2026 and its supplements, and Figure Technology Solutions' Form 10-Q for June 30, 2026 (CIK 2064124). Comparison rates are for September 30, 2026. Website statements are quoted as captured October 16, 2026. ## Key figures | Figure | What it is | Context | | --- | --- | --- | | 85.9% | Most YLDS outstanding is held directly by Figure entities; how much of that is Figure's own capital rather than borrowed YLDS is not reconciled in the filings. | Share of YLDS classified as related-party certificate holdings at June 30, 2026. $477.5 million of $556.0 million; third parties held $78.5 million directly. Related-party holdings can include YLDS Figure borrowed through Democratized Prime. | | $4.2M | Qualified assets above the statutory reserve requirement at June 30, 2026. | About 0.75% of the requirement, at amortized cost; $0.5 million at December 31, 2025. GAAP equity was $994,000. | | Sept 2027 | End date of the parent's support letter to FCC. | Addressed to FCC; the filings do not say whether certificate holders could enforce it. | | $762.8M | Surrenders paid in the first half of 2026. | $319.8 million to related parties; a working process at volume, not a stress test. | | KPMG | Auditor of FCC's annual financial statements. | Form 10-K for 2025; quarterly reports unaudited; custody at UMB Bank and Flagstar Bank. | ## Verdict YLDS is a registered security with statutory reserves in short Treasuries, and its surrender process has paid hundreds of millions at face. It is not a money market fund and not principal-protected: holders are creditors of a Figure subsidiary with $994,000 of GAAP equity and a statutory surplus under 1%, whose obligations its parent has committed by letter to cover through September 2027. 85.9% of certificates were classified as related-party holdings. Compare its rate with government money fund yields on the same date before choosing it. **Best for** - Holders who need a registered, yield-bearing dollar unit inside Figure's on-chain platforms. - Crypto treasuries comfortable with a claim on a reserved but thinly capitalized issuer and its parent's support. **Look elsewhere if** - You want money market fund portfolio rules or insurance. - You would rely on same-day redemption or a credit facility. - You plan to lend it into Democratized Prime without reading its terms. **Strengths** - SEC-registered issuer with statutory reserves, a custody order and KPMG-audited annual statements. - Reserves held in Treasury bills and Treasury repo at June 30, 2026. - Parent support letter covering FCC's unmet obligations through September 30, 2027. - No holder fees; daily accrual; surrender at face any time, paid at volume. **Limitations** - Unsecured; statutory surplus about 0.75%; GAAP equity $994,000; support letter addressed to FCC and time-limited. - 85.9% classified as related-party holdings; direct third-party holdings grew $2.6 million in the first half of 2026. - Issuer loss-making and dependent on parent support. - Website claims (principal-protected, credit-line-backed, money-fund-like governance) beyond the prospectus. ## Who it fits | Investor | Fit | Why | | --- | --- | --- | | Crypto treasuries holding idle dollars on Provenance or Stellar | neutral | | | US individuals comparing it with a money market fund | poor-fit | | | Participants in Figure's lending and trading platforms | neutral | | | Anyone needing a guaranteed or insured dollar | poor-fit | | ## Questions **Is YLDS safe?** YLDS is an SEC-registered debt certificate whose issuer must hold statutory reserves; at June 30, 2026 they were in Treasury bills and Treasury repurchase agreements. It is not insured. Holders are unsecured creditors of Figure Certificate Company, whose qualified assets exceeded its reserve requirement by about 0.75% and whose GAAP equity was $994,000. Its parent has committed by letter to satisfy obligations FCC cannot meet through September 30, 2027; the letter is addressed to FCC. The prospectus says investors could lose money. **Is YLDS a stablecoin?** Not legally. It is a face-amount certificate, a registered debt security with a $0.01 face amount that pays interest. The website calls it 'Not a stablecoin. A security that acts like one.' FCC redeems at face, but the prospectus says it 'does not seek to maintain a stable value of $1.00 per share' the way a money fund does. **What does YLDS pay?** Overnight SOFR minus 0.35%, with a 0% floor, accrued daily and paid monthly in additional certificates or dollars. On September 30, 2026 that was 3.55%; the same day FOBXX, a government money fund, reported a 7-day net yield of 3.73%. **How do I redeem YLDS?** Surrender to FCC through ylds.com or Figure Markets at any time, at face plus accrued interest. The prospectus says surrenders are processed within 24 hours but may take longer for blockchain congestion or other technological reasons; wire or ACH proceeds may take up to 5 days and stablecoin proceeds up to 10 days. FCC paid $762.8 million of surrenders in the first half of 2026. **Who holds YLDS?** At June 30, 2026, $477.5 million of the $556.0 million outstanding was classified as related-party holdings and $78.5 million as third-party holdings; FCC reported 3,450 accounts in total. Figure's parent separately reported $347.7 million of YLDS borrowed through Democratized Prime, so related-party holdings can include borrowed YLDS as well as Figure's own capital. **Is YLDS the same as a money market fund?** No. Both are registered under the Investment Company Act, but FCC is a face-amount certificate company not subject to money fund rules on quality, maturity, diversification and liquidity, and a YLDS holder is a creditor rather than an owner of the portfolio. ## Evidence appendix Platform website captured October 16, 2026. EDGAR: all 119 filings of Figure Certificate Company (CIK 1974395), including the prospectus of April 24, 2026, 424B3 supplements of June 30 and August 6, 2026, the 2025 10-K, five 10-Qs and the June 2026 10-Q's Exhibit 99.1, 13 SEC correspondence letters, the 40-APP and December 2024 order, and 63 Rule 497 advertisements; Figure Technology Solutions' June 2026 10-Q and 2026 8-Ks; FOBXX's September 2026 N-MFP3 and New York Fed SOFR for the rate comparison. Site: ylds.com crawl, October 16, 2026. On-chain: Provenance supply of uylds.fcc. Legal: CourtListener, SEC releases, web search. **Highlights** - Prospectus: 'Figure Certificates ... are unsecured and solely backed by the assets of Figure Certificate Company.' - Exhibit 99.1 (June 30, 2026): the parent 'will satisfy, on a timely basis all liabilities and obligations of the Company that the Company is unable to satisfy when due from the date of this letter, through and including September 30, 2027.' - Prospectus: 'FCC does not and does not intend to borrow money, although from time to time, FCC may establish a line of credit with banks.' - Prospectus: 'unlike a money market fund, FCC does not seek to maintain a stable value of $1.00 per share.' - ylds.com: 'Redeem As fast as same day. Credit-line-backed liquidity.' **Primary source pages** - Prospectus (497, April 24, 2026): summary, risk factors, money market fund comparison, reserves, service providers and fees, directors and officers. - Form 10-Q, June 30, 2026 (unaudited): balance sheet, statements of operations and cash flows, Notes 2, 4 and 6, Schedules I, V and VI. - Exhibit 99.1 to the June 2026 10-Q: the parent's support letter dated June 30, 2026, through September 30, 2027. - Form 10-K, 2025: KPMG-audited statements; qualified assets at December 31, 2025. - Form 8-K, January 23, 2026: Cagney and Grueter resignations; Tannenbaum and Kgil appointments. - 424B3 supplements of June 30 and August 6, 2026: Tempo added; surrender timing; stablecoin purchase and surrender through Figure Payments. - Figure Technology Solutions Form 10-Q, June 30, 2026: Democratized Prime YLDS debt of $347.7 million. ## Related - Full review (HTML): https://altstreet.investments/platforms/reviews/ylds - Every platform review: https://altstreet.investments/platforms/reviews - Methodology and scoring: https://altstreet.investments/platforms - Category hub: https://altstreet.investments/categories/tokenized-rwa --- Source page: https://altstreet.investments/platforms/reviews/ylds Machine index: https://altstreet.investments/llms.txt AltStreet reads what platforms, funds and issuers file with the SEC and what they tell investors, and publishes the difference. Figures are as filed or as captured on the date stated; nothing here is investment advice.