Odaily Planet Daily reports that Figure Markets Holdings, Inc. submitted multiple reports to the U.S. SEC Crypto Task Force in May 2025, proposing the use of its transferable face value certificates called YLDS (Figure Transferable Certificates) as an optional mechanism for settling Bitcoin, Ethereum, and other non-security crypto assets on the Provenance blockchain.

The reports state that YLDS are interest debt securities regulated under the Securities Act and the Investment Company Act, issued by registered investment companies and managed by registered transfer agents. They provide holders with AML/KYC compliance, ledger transparency, and holder rights protection. Additionally, certificate exchanges require both parties to have completed registration statement review and passed compliance account verification.

There is also a submission suggesting that FCC (Figure Certificate Company) does not need to perform AML/KYC on peer-to-peer transaction counterparts, as FCC itself is not a financial institution nor are its peer-to-peer counterparts its clients. This mechanism combines the transparency of L1 blockchain with traditional regulatory requirements, aiming to improve settlement efficiency and investor protection while avoiding classifying the platform as a broker or exchange.

Odaily Planet Daily News: Figure Markets Holdings, Inc. submitted multiple reports to the U.S. SEC Crypto Task Force in May 2025, proposing the use of its transferable nominal value certificates called YLDS (Figure Transferable Certificates) as an optional mechanism for settling Bitcoin, Ethereum, and other non-security crypto assets on the Provenance blockchain. The reports indicate that YLDS are interest-bearing debt securities regulated under the Securities Act and Investment Company Act, issued by a registered investment company and managed by a registered transfer agent, providing holders with AML/KYC compliance, ledger transparency, and protection of holders' rights. Additionally, certificate exchanges require both parties to have completed registration statement reviews and passed compliance account verification. There is also a proposal that FCC (Figure Certificate Company) is not required to perform AML/KYC on peer-to-peer transaction counterparties because FCC itself is not a financial institution and its peer-to-peer counterparts are not its clients. This mechanism combines Layer 1 blockchain transparency with traditional regulatory requirements, aiming to improve settlement efficiency and investor protection while avoiding classification of the platform as a broker or exchange.

Figure Markets Submits Report to the U.S. SEC: YLDS Can Be Applied to Crypto Asset Settlement Mechanisms