Sui & Figure Deploy SEC-Registered YLDS Token

The Sui Blockchain integrates Figure’s SEC-registered YLDS yield token, enabling on-chain yield via short-term treasuries and staking for DeFi applications.

Sui and Figure’s Strategic Milestone: On-Chain Yield Meets DeFi Infrastructure

In October 2025, Sui announced a strategic partnership with Figure Technology Solutions (via its subsidiary Figure Certificate Company) to deploy the yield-bearing token YLDS natively on the Sui Blockchain. This collaboration represents a convergence of real-world asset tokenisation and DeFi infrastructure — with regulatory compliance as a design feature rather than an afterthought.

What YLDS Represents

YLDS is structured as a registered debt security, issued under U.S. securities regulation, backed by short-term U.S. Treasury securities and repurchase agreements involving Treasuries. Its yield is determined as the Secured Overnight Financing Rate (SOFR) minus 35 basis points, with accrual calculated daily and payouts made monthly.

This architecture places YLDS somewhere between a traditional money-market instrument and an on-chain composable token. It allows both retail and institutional participants to access a yield-bearing digital instrument with 24/7 transferability, peer-to-peer utility, and direct composability in smart-contract ecosystems.

How This Integrates With Sui’s DeFi Stack

At the heart of the deployment is the Sui stack’s main on‐chain liquidity primitive: DeepBook, Sui’s limit-order-book engine and flagship venue. Under the partnership:

• Stablecoins on Sui (and specifically within DeepBook’s architecture) can be automatically converted into YLDS.
• YLDS becomes a foundational yield layer for margin-trading and lending pools built on DeepBook. By converting stablecoin holdings into yield-bearing assets, capital efficiency and liquidity dynamics are enhanced.
• A direct fiat-on/off-ramp capability is anticipated: by minting YLDS natively on the blockchain, the need for traditional central-exchange rails may be reduced.

In short: Sui gains access to a regulated, yield-generating asset that is natively integrated; Figure gains a blockchain native venue for deploying its tokenised yield product into a DeFi stack.

Why This Matters for Real-World Assets (RWA) in DeFi

The deployment of YLDS on Sui signals several broader shifts in the blockchain / DeFi landscape:

• It underlines the transition from purely speculative token-inventory models toward regulated on-chain instruments whose value is tied to real-world financial assets (in this case, treasury securities + repos).
• By aligning a regulated product with blockchain-native composability, it bridges the compliance world (trad-Fi) and the innovation world (DeFi).
• For Sui specifically, it enhances its value proposition to institutional users by showing the capability to host assets that meet regulatory scrutiny and yield-generating functionality.
• From a developer perspective, YLDS may act as a building block: other protocols on Sui could layer on top of YLDS, using it as a yield-foundation or collateral within applications.

Considerations and Risks

While the integration offers compelling innovation, several caveats are worth noting:

• “Registered security” means YLDS is subject to regulatory regimes (SEC registration/disclosure, etc). This may limit who can participate, or impose “KYC/AML” or accreditation constraints in certain jurisdictions.
• YLDS is backed by treasuries and repos, but interest-rate risk, liquidity risk (on-chain vs off-chain), or token-specific smart-contract risk remain considerations.
• The DeFi infrastructure (margin pools, isolated lending pools) that utilises YLDS is still developing; execution risk remains.
• From an adoption standpoint, native fiat rails and the automatic stablecoin→YLDS conversion require significant user education and infrastructure maturation.

Outlook for Sui Ecosystem

For the Sui ecosystem, this association with Figure and YLDS enhances its positioning in two key ways:

1. Institutional signal: The move shows Sui can host asset classes beyond purely crypto-native tokens, opening the door to regulated capital flows and real-world asset linkages.
2. Liquidity depth and composability: A yield-bearing token with native composability may enhance liquidity efficiency, attract capital, and spur new protocol designs on Sui built around yield optimisation, lending, margin trading, and RWA.

In the broader DeFi narrative, we may see YLDS deployed beyond just DeepBook — potentially as collateral in other lending protocols, as a yield source in vaults, or as a pairing for stablecoins seeking yield. Early adopters on Sui should monitor how YLDS is integrated, how liquidity develops, and how user-flows (conversion from stablecoin → YLDS → application) evolve.

Conclusion

The collaboration between Sui and Figure to deploy YLDS marks a strategic convergence of regulated finance and blockchain innovation. For Sui, this deepens its infrastructure credentials and opens new pathways for institutional participation. For Figure, Sui offers a scalable, composable venue for its yield-bearing token.

While execution timelines and adoption flows remain to be fully realised, the integration of a registered debt‐security token into a native blockchain protocol signals a meaningful shift in how DeFi and traditional finance interoperate. As Sui developers and ecosystem participants, this presents both opportunity and responsibility: to build protocols that leverage such assets effectively, while recognising regulatory and infrastructure maturity constraints.

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