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BitGo Holdings (NYSE: BTGO) announced that its OCC-regulated subsidiary, BitGo Bank & Trust, has begun offering qualified custody for YLDS, the first SEC-registered yield-bearing digital security. The product is issued by Figure Certificate Company, a subsidiary of Figure Technology Solutions (Nasdaq: FIGR).
YLDS launched on February 20, 2025, structured as a tokenized face-amount certificate. It’s an unsecured obligation pegged to the dollar that accrues daily yield at the Secured Overnight Financing Rate (SOFR) minus 35 basis points, working out to roughly 3.27% recently. Holders receive monthly payouts in either USD or additional YLDS. There are no staking requirements and no lockup periods, and the tokens are transferable peer-to-peer.
As an OCC-regulated trust company, BitGo Bank & Trust meets the qualified custodian threshold that institutional allocators need before they can hold a product like YLDS. Without that custodial infrastructure, even the most elegantly designed digital security sits in a regulatory no-man’s-land for most professional money managers.
BitGo backs its qualified custody service with a $250 million insurance policy covering digital assets held in its care. The combination of OCC regulation, offline key management, and that insurance coverage addresses the criteria that compliance departments use to evaluate custodial arrangements.
Figure Technology Solutions has facilitated over $23 billion in on-chain loans, predominantly using the Provenance Blockchain. YLDS extends that infrastructure into yield-bearing securities.
For registered investment advisors specifically, this development opens a door that was previously locked. RIAs operating under SEC or state regulations have fiduciary obligations that effectively require qualified custody for client assets. BitGo Bank & Trust’s support for YLDS means these advisors can now allocate to a yield-bearing on-chain product without running afoul of custody rules.
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