A blockchain-focused financial services company wants to launch an interest-bearing stablecoin tied to the penny.
San Francisco-based Figure plans to establish a subsidiary called Figure Certificate Company, according to a registration statement filed with the U.S. Securities and Exchange Commission (SEC) in October.
The subsidiary hopes to issue “Figure Transferable Certificates,” which are transferable digital assets priced at $0.01 per certificate. Figure says the certificates will earn simple interest credited to the holder daily, and accrued interest will be paid monthly in dollars that are automatically invested in new certificates unless the holder opts out. The certificates expire 20 years after their date of issue.
Figure uses the open source Provenance Blockchain for lending, stock management, private funds and payment offerings. Origin advertises more than $9 billion in real assets actively managed across the chain.
The certificates, if approved by the SEC, will also be launched on Provenance. Certificate holders will earn interest from the Figure Certificate Company’s investments in fixed income securities, corporate bonds, commercial paper and foreign securities.
Figure views the certificates as stablecoin alternatives, as well as a settlement currency and payment rail.
“Certificate holders can use the Figure Transferable Certificates as an alternative to currently available stablecoins that offer no returns, are not regulated under the Investment Company Act and are in bearer form.”
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