Crypto startup Figure is seeking SEC approval to issue interest-bearing stablecoins

According to Bloomberg, Figure Technologies Inc. a blockchain and lending startup founded by Mike Cagney, former chief executive officer of SoFi Technologies Inc. is seeking approval from the U.S. SEC for the issuance of an interest-bearing stablecoin. If successfully approved, Figure will offer the first stablecoin to be regulated as a security in the US. Documents show that Figure filed a Form S-1 with the SEC last October in the name of its subsidiary, FigureCertificateCo.Figure expects that its product will be used as a replacement for existing stablecoins for payment and transaction settlement, and that interest will be derived from reserves, which include treasury bonds, commercial paper, corporate debt, etc., and that holders will be required to complete the Holders will be required to complete a "know your customer" process to register and access the stablecoin, and the product will be open to both retail and institutional investors in the US.