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.
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What the data actually shows - TL;DR
YLDS is marketed as a yield-bearing stablecoin, and the website says it will 'Settle at $1.00. Always.'
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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.
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.
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.
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.
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.
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.
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.
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.
Quick Verdict
Is this platform right for you?
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.
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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.
Avoid 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.
Top 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.
Key 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.
Compare Before Deciding
Where YLDS (Figure Certificate Company) fits against alternatives
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Quick Answers
What most investors want to know first
The highest-signal facts first: minimums, liquidity reality, K-1 timing, and whether distributions are actually part of the experience.
Liquidity
No exchange listing; the prospectus expects 'low or no volume' in peer-to-peer and ATS transfers. Surrender to FCC is the exit.
K-1 Timing
No K-1; Forms 1099-INT and 1099-DA.
Distributions
Accrues daily to the holder of record at 6:59 pm ET.
Overview
Platform Overview
A concise read on what the platform is, how the structure works, and where the practical friction shows up for real investors.
Figure Certificate Company (FCC) is a Delaware corporation formed April 13, 2023 and registered with the SEC as a face-amount certificate company, a category of investment company under the Investment Company Act of 1940. It began issuing Figure Transferable Certificates, branded YLDS, on February 18, 2025 (the 10-Q dates the public launch February 20). Each certificate is a debt obligation of FCC with a face amount of $0.01, issued daily, bearing interest at overnight SOFR minus 35 basis points (floor 0.00%), surrenderable at any time for face plus accrued interest, and maturing 20 years after issue.
Interest accrues daily from no later than two business days after purchase and is paid monthly, reinvested in additional certificates unless the holder opts for dollars. The certificates are recorded by FCC's transfer agent, Figure Equity Solutions, through a 'proprietary blockchain-integrated system' on Provenance, with Solana, Stellar, Avalanche, Sui and Tempo approved on request; transfers are permitted only between wallets that have passed Figure's AML and KYC checks, and the transfer agent can correct records. FCC is wholly owned by Figure Technologies, LLC, a subsidiary of Figure Markets Holdings, itself a subsidiary of Figure Technology Solutions (Nasdaq: FIGR). The prospectus also registers Figure Installment Certificates at full SOFR; none had been issued at June 30, 2026.
The SEC approved its custodial arrangements by order under Section 28(c) in December 2024. YLDS launched February 20, 2025 on Provenance, the blockchain Figure's personnel built. The 2024 exemptive application described the rate as SOFR minus 0.50%; the current prospectus says SOFR minus 0.35%.
It grew from $4.6 million issued by June 30, 2025 to $329.0 million outstanding at December 31, 2025 and $556.0 million at June 30, 2026. Figure Technology Solutions, FCC's ultimate parent, listed on Nasdaq in September 2025, issued $600 million of 8.50% senior notes in July 2026 and closed its acquisition of Kiavi in September 2026. In January 2026 Michael Cagney stepped down as FCC's chief executive in favor of Michael Tannenbaum.
The June 2026 supplement added Tempo to the approved networks; the August 2026 supplement added purchase and surrender in stablecoins through Figure Payments. The parent's support letter dated June 30, 2026 runs through September 30, 2027.
Issuer
Figure Certificate Company (CIK 1974395; 811-23913; 333-275154), a registered face-amount certificate company; wholly owned by Figure Technologies, LLC, within Figure Technology Solutions, Inc. (Nasdaq: FIGR).
Security
Figure Transferable Certificates (YLDS): $0.01 face, issued daily, SOFR minus 0.35% (floor 0.00%), daily accrual, monthly payment, surrender any time at face plus accrued interest, 20-year maturity, unsecured.
Size
$556.0 million of certificates at June 30, 2026 ($477.5 million classified as related-party holdings); 3,450 accounts; website showed '$507 M+' market cap in October 2026.
Reserves and support
$561.9 million of qualified assets against a $557.7 million requirement at June 30, 2026 (Treasury bills, UMB and Hidden Road overnight repo, cash); GAAP equity $994,000; parent support letter through September 30, 2027.
Providers
Adviser Figure Investment Advisors (0.10%); administrator and transfer agent Figure Equity Solutions; AML/KYC Figure Payments; custodians UMB Bank and Flagstar Bank; auditor KPMG; counsel Allen Overy Shearman Sterling.
Networks
Provenance (primary); Solana, Stellar, Avalanche, Sui and Tempo on request at FCC's discretion. Transfers only between KYC-approved wallets; gas paid by FCC.
Visual Summary
YLDS against yield-bearing dollar products AltStreet covers
What the holder owns and what stands behind it, from each product's own documents as recorded in AltStreet's reviews.
YLDS (Figure Certificate Company)
What the holder owns
An unsecured debt certificate of a registered face-amount certificate company, redeemable at face
What backs it
FCC's statutory reserves (Treasury bills and repo at June 2026), plus a parent support letter to FCC through September 2027
Franklin Benji (FOBXX)
What the holder owns
A share of a registered government money market fund at a $1.00 NAV
What backs it
A pro rata share of the fund's government securities, held under Rule 2a-7 portfolio rules
Worthy Bonds
What the holder owns
Unsecured demand bonds of a Regulation A issuer
What backs it
The issuer's loan book; no statutory reserve
Compound Real Estate Bonds
What the holder owns
Unsecured demand bonds of a Regulation A issuer
What backs it
The issuer's real estate lending; no statutory reserve
Investor Operations
The practical questions investors actually care about: when tax documents arrive, how cash distributions work, and whether capital can be exited before the underlying asset is sold.
Tax Documents
K-1 Timing
What to expect
No K-1; Forms 1099-INT and 1099-DA.
Cash Flow
Distributions
Frequency
Monthly, on the first of the month.
Timing
Accrues daily to the holder of record at 6:59 pm ET.
Consistency
Variable with SOFR; paid as stated since launch ($8.3 million in the first half of 2026).
Liquidity
Exit Reality
Holding period
None.
Exit options
- Surrender to FCC at face plus accrued interest.
- Transfer to another approved wallet, on-chain at face or off-chain at an agreed price.
Secondary market
No exchange listing; the prospectus expects 'low or no volume' in peer-to-peer and ATS transfers. Surrender to FCC is the exit.
Investment Structures
Figure Transferable Certificates (YLDS)
$0.01 face, no minimum, issued daily against dollars by wire or ACH, a Figure Payments balance or, since August 2026, an accepted stablecoin converted by Figure Payments. Interest at SOFR minus 0.35% accrues daily and is paid on the first of each month in additional certificates unless the holder elects dollars; rounding can reduce small balances' interest to zero. Surrender at face plus accrued interest at any time; no surrender charge beyond pass-through ACH fees. Matures 20 years from issue.
Democratized Prime (Figure's lending marketplace, not FCC)
Holders can lend YLDS to Figure through Democratized Prime at rates set by Figure's auction; the parent records these as debt 'collateralized by pools of loans.' $347.7 million at June 30, 2026. Lending adds a separate exposure to Figure's lending business on terms set by Democratized Prime's own agreement, which AltStreet has not reviewed; it is not offered under FCC's prospectus.
Figure Installment Certificates
Registered, not yet issued: $1,000 to $1 million initial payment, annual installments of 25%, interest at full SOFR, surrender at any time.
Risk
Risk Structure
This is where the marketplace pitch gives way to the actual operating reality: delayed exits, limited disclosure, fee drag, and path-dependent outcomes.
Issuer credit
Unsecured claim on FCC, which had $994,000 of GAAP equity at June 30, 2026; parent support letter to FCC through September 30, 2027, enforceability by holders not addressed.
Statutory surplus
Qualified assets exceeded the reserve requirement by $4.2 million (about 0.75%, amortized cost) at June 30, 2026 and $0.5 million at December 31, 2025.
Reserve assets
Treasury bills under 90 days and overnight Treasury repo at June 30, 2026; the law permits broader DC insurance-code investments.
Counterparty concentration
$200 million of overnight repo with Hidden Road Partners CIV US LLC, about 36% of assets.
Holder concentration
85.9% classified as related-party holdings, which can include YLDS Figure borrowed through Democratized Prime; related-party flows are a large share of issuance and surrender.
Register control
Figure's transfer agent keeps the official record, approves wallets and can reverse transfers.
Little standalone capital; reliance on parent support
FCC's statutory surplus was $4.2 million and its GAAP equity $994,000 at June 30, 2026. Figure Technology Solutions has committed by letter to satisfy FCC obligations FCC cannot meet when due, through September 30, 2027.
Why it matters
Under stress, holders' recoveries would depend on what the reserve assets realize, creditor rights and whether the parent's support is delivered. The letter is addressed to FCC, ends in September 2027 unless extended, and its enforceability by holders is not addressed.
Mitigation / verification
Check each 10-Q for a renewed support letter, the qualified-assets note and Schedule I counterparties.
Related-party flows drive the balance
$477.5 million of $556.0 million was classified as related-party holdings at June 30, 2026; related parties bought $539.4 million and surrendered $319.8 million in six months.
Why it matters
FCC's size and economics depend on Figure's use of YLDS in Democratized Prime and its other platforms; a change in Figure's funding strategy could shrink FCC quickly.
Mitigation / verification
Track the related-party and third-party certificate lines on FCC's balance sheet each quarter.
Lending YLDS adds a separate exposure
YLDS lent through Democratized Prime is recorded as the parent's debt, 'collateralized by pools of loans', at auction-set rates.
Why it matters
The lender takes on exposure to Figure's lending business and its loan collateral, on terms set by Democratized Prime's agreement rather than FCC's prospectus.
Mitigation / verification
Read Democratized Prime's own agreement and collateral terms before lending.
Marketing claims run ahead of the prospectus
The site says 'principal-protected', 'credit-line-backed liquidity' and a governance framework 'similar to money market funds'; the prospectus says holders could lose money, FCC does not intend to borrow, and FCC is not subject to money fund rules.
Why it matters
Investors relying on the site may assume protections the security does not have.
Mitigation / verification
Read the prospectus risk factors and the money market fund comparison table before buying.
Regulatory & Legal Posture
Security Status
SEC-registered face-amount certificate company under the Investment Company Act (811-23913); certificates registered under the Securities Act (333-275154); periodic reports under the Exchange Act.
FCC is one of two face-amount certificate companies the prospectus knows of. It files a 10-K with audited statements, 10-Qs with Regulation S-X Article 6 schedules, and advertisements under Rule 497. The SEC's December 2024 order under Section 28(c) approved its custody arrangements for reserves.
- Parent support letter (Exhibit 99.1 to the June 2026 10-Q), signed by the parent's chief financial officer: support 'sufficient for it to satisfy its obligations and debt service requirements as they come due until at least September 30, 2027', satisfaction of FCC obligations it cannot meet when due through that date, and no repayment demanded on intercompany loans and advances.
- The prospectus says the transfer agent, the Provenance Blockchain Foundation and the approved blockchains are not licensed as money transmitters or registered with FinCEN, and that a contrary view could affect peer-to-peer transfers.
- SEC staff comments (May and June 2025) led to disclosure that the transfer agent's off-chain records govern ownership and to a risk factor on using YLDS for settlement on unregistered platforms.
- Figure Technology Solutions disclosed a January 2026 social-engineering breach; proposed class actions and other consumer suits followed against Figure Lending. The parent's June 2026 10-Q says management knows of no actions that would have a material adverse effect.
- Sandler v. Figure Technology Solutions (N.D. Cal. 4:26-cv-00944), filed January 30, 2026 against the parent, Michael Cagney and Michael Tannenbaum; the docket attaches an advisor agreement and AltStreet has not determined the claims. It does not name FCC.
- Legal scan, October 16, 2026: no SEC, FINRA or state action naming FCC or YLDS located (CourtListener, SEC releases, web search); state dockets not comprehensively searched.
Disclosure Quality
Strong in the filings (annual statements audited by KPMG; quarterly figures unaudited): balance sheet split by related and third-party holders, schedules of investments and qualified assets on deposit, certificate activity, related-party fees and the parent's support letter. Weaker on the website, whose claims are broader than the prospectus.
Custody Model
Reserves with UMB Bank (Treasury bills and repo) and cash at Flagstar Bank and in a Figure Payments account at Lead Bank. Certificates recorded by Figure Equity Solutions, FCC's transfer agent, on Provenance and other approved networks; holders self-custody wallet keys unless they use a custodian.
Regulatory Backing
Section 28 reserve and capital requirements, the Section 28(c) custody order, the board's independent majority, and the Investment Advisers Act for Figure Investment Advisors.
Tax Treatment
Reporting
Form 1099-INT (interest); Form 1099-DA (withdrawals and basis)
Annual, per the prospectus.
Income Character
Interest income
FCC treats the certificates as debt for federal income tax purposes and reports interest on Form 1099-INT; interest paid in additional certificates is income when credited. The prospectus warns there is 'very limited guidance' on digital assets and the IRS could disagree.
Limitation
AltStreet is not a tax adviser.
Special Considerations
- Reinvested monthly interest is taxable even though no cash is paid.
- Lending YLDS through Democratized Prime is a separate transaction with its own tax treatment.
Account Suitability
Taxable
Yes.
Roth IRA
The prospectus discusses holding through an IRA but says certificates 'may not be available for all types of retirement accounts.'
Traditional IRA
As for Roth: possible in principle; confirm with the custodian.
HSA
Not addressed.
Before You Invest
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AltStreet Data Layer
What the data actually shows
FCC's Regulation S-X schedules make YLDS unusually measurable: who holds it directly, what backs it, and how much flows in and out each quarter.
Mostly related-party holdings
Related-party certificate holdings were $477.5 million of $556.0 million at June 30, 2026, up from $252.3 million of $328.2 million at December 31, 2025.
What this means
Growth came through related-party holdings, which can include YLDS borrowed through Democratized Prime; direct third-party holdings rose $2.6 million in six months.
A statutory surplus under 1%
Qualified assets exceeded the requirement by $4.2 million at June 30, 2026 and by $0.5 million at December 31, 2025; GAAP equity was $994,000.
What this means
FCC's own capacity to absorb losses is small; the parent's support letter through September 2027 carries much of the weight.
Redemptions at volume
$762.8 million surrendered in the first half of 2026, $499.4 million in the second quarter, $319.8 million of the half to related parties.
What this means
The surrender process works at volume; it has not been tested by an independent run.
One repo counterparty, 36% of assets
$200 million overnight repo with Hidden Road Partners CIV US LLC at June 30, 2026.
What this means
Treasury collateral protects it, but counterparty concentration is high for an issuer with $994,000 of GAAP equity.
Data as of 2026-10-16 . AltStreet review evidence layer . Public-source analysis
Full datasetDecision Fit
Investor Fit
Who this works for, who it does not, and what level of patience and complexity tolerance the platform really demands.
Crypto treasuries holding idle dollars on Provenance or Stellar
A registered yield-bearing dollar unit that redeems at face, if the holder accepts a claim on an issuer with little standalone capital whose parent support letter runs to September 2027.
US individuals comparing it with a money market fund
Compare the YLDS rate with government money fund yields on the same date (3.55% against FOBXX's 3.73% 7-day net yield on September 30, 2026); YLDS has no Rule 2a-7 portfolio rules and no pro rata ownership of the assets.
Participants in Figure's lending and trading platforms
YLDS is the settlement unit there; lending it into Democratized Prime is a separate credit decision about Figure's lending business.
Anyone needing a guaranteed or insured dollar
Not insured; the prospectus says the certificates are backed solely by FCC's assets, and the parent's support letter is addressed to FCC and runs to September 2027.
Tradeoffs
Key Tradeoffs
The attraction of pre-IPO access is real, but every benefit comes bundled with a corresponding liquidity, transparency, or pricing cost.
Safety
Unsecured; statutory surplus under 1%; GAAP equity under $1 million.
Yield
3.55% against FOBXX's 3.73% 7-day net yield on September 30, 2026, without money fund portfolio rules.
Liquidity
Proceeds up to 5 days by bank; no credit facility located in FCC's filings; not tested by an independent run.
Programmability
Permissioned, reversible register controlled by Figure.
Avoid
Who This Is Not For
This section should be read as a filter, not an afterthought. If you need income, simplicity, or near-term access to capital, the structure is working against you.
Savers who want the portfolio rules of a money market fund
FCC is not subject to Rule 2a-7, and holders are creditors, not owners of the portfolio.
Anyone reading 'principal-protected' literally
The prospectus says holders could lose money and the certificates are unsecured.
Holders who want a bearer stablecoin
Every holder is KYC'd and the transfer agent can correct or reverse transfers.
Editorial View
AltStreet Perspective
The compressed version of the review: what matters, what marketing tends to obscure, and how we would frame the platform for a serious allocator.
Verdict
Figure found a 1940s structure that lets it pay interest on a transferable digital dollar under SEC registration, and YLDS works as designed: daily accrual, redemption at face, statutory reserves in Treasuries. The structure's weakness is that it is debt of an issuer with little capital of its own, whose reserve test is measured at amortized cost and whose resilience under stress rests substantially on its parent's support letter. An outside holder gets a SOFR-linked rate with creditor exposure to FCC and, through that letter, to Figure; Figure gets a funding and settlement unit for its lending business.
Positioning
Among yield-bearing dollar products AltStreet covers, YLDS sits between Franklin's FOBXX (a registered money fund share) and Regulation A demand bonds such as Worthy and Compound (unsecured issuer debt without statutory reserves): registered and reserved like the first, unsecured like the second.
The Bottom Line
A registered, Treasury-reserved but unsecured debt certificate of a thinly capitalized Figure subsidiary that relies on its parent's support and is mostly held by Figure entities.
Action
Next Steps
If you still want to engage after reading the review, these are the practical next moves that reduce avoidable mistakes.
Read the prospectus sections 'Certificates Are Unsecured and Backed Only By FCC Assets' and 'Figure Certificates Are Not Money Market Fund Shares.'
Read the parent's support letter (Exhibit 99.1 to the June 2026 10-Q) and check that later 10-Qs renew it as September 30, 2027 approaches.
Check the reserve surplus on ylds.com and the qualified-assets note in the latest 10-Q (CIK 1974395).
Before lending YLDS into Democratized Prime, read its agreement and collateral terms; that exposure is to Figure's lending business.
AltStreet Research Desk
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Deal Intelligence →Appendix
Sources, Disclosures, and Supporting Context
The lower section is structured like a report appendix: relationship context first, adjacent reading second, and evidence last.
Report Appendix
Disclosure
Relationship and compensation context
+
Report Appendix
Disclosure
Relationship and compensation context
Report Appendix
Related Resources
Adjacent platform comparisons, frameworks, and category links
+
Report Appendix
Related Resources
Adjacent platform comparisons, frameworks, and category links
Further Reading
Related Resources
Adjacent frameworks and reviews that help place the platform in a broader allocation or due-diligence context.
Frameworks
Similar Platform Reviews
- Franklin Templeton Benji Review
A registered government money fund with its share register on public blockchains.
- Worthy Review
Regulation A demand bonds from a single issuer.
- Compound Real Estate Bonds Review
Unsecured $10 demand bonds from a Regulation A issuer.
Report Appendix
Evidence & Methodology
Sources, scope, and how the review was assembled
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Report Appendix
Evidence & Methodology
Sources, scope, and how the review was assembled
ASReview Evidence
Methodology
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.
Scope
Figure Certificate Company and its Figure Transferable Certificates (YLDS); Democratized Prime only as it appears in the parent's filings.
Key Findings
- *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
Comparable Platforms
- Franklin Templeton Benji
A registered money fund share rather than issuer debt.
- Worthy
Unsecured Regulation A demand bonds without statutory reserves.
FAQ
Frequently Asked Questions
High-intent search questions answered directly, without making users hunt through the full review.
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.