A blockchain-focused financial services company wants to launch an interest-bearing stablecoin pegged to the penny.
According to a registration statement filed with the U.S. Securities and Exchange Commission (SEC) in October, the San Francisco-based Figure wants to set up a subsidiary called Figure Certificate Company.
The subsidiary hopes to issue “Figure Transferable Certificates,” which are transferrable digital asset securities priced at $0.01 per certificate. Figure says the certificates will accrue simple interest daily that is credited to the holder, and accrued interest will be paid monthly in dollars that are automatically invested in new certificates unless the holder opts out. The certificates mature 20 years after their issue date.
Figure uses the open-source Provenance Blockchain for its loan origination, equity management, private fund, and payment offerings. Provenance advertises more than $9 billion worth of real-world assets actively managed on its chain.
The certificates, if approved by the SEC, will also launch on Provenance. Certificate holders will earn interest from the Figure Certificate Company’s investments in fixed-income securities, corporate debt securities, commercial paper and foreign securities.
Figure envisions the certificates as stablecoin alternatives, as well as a settlement currency and a payment rail.
“Certificate holders may use the Figure Transferable Certificates as an alternative to currently available stablecoins that do not offer any yield, are not regulated under the Investment Company Act, and are in bearer form.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Click Here to Read the Full Original Article at The Daily Hodl…
