EDX Taps Figure's YLDS for Collateral, Joining BlackRock in Tokenised Treasury Race
U.S. Treasuries
EDX Markets has integrated Figure Technology Solution’s YLDS, a yield-bearing digital security, into its institutional cryptocurrency infrastructure to serve as collateral for trading and clearing. This move allows institutional clients to maintain liquidity while earning yield on assets that would otherwise remain idle. By incorporating YLDS, EDX aims to bridge the gap between traditional capital management and on-chain finance. To demonstrate confidence in the asset, EDX Markets will also hold YLDS on its own balance sheet as a treasury asset. This development follows a broader industry trend where tokenized instruments, such as BlackRock’s BUIDL and Franklin Templeton’s offerings, are increasingly utilized as collateral across major crypto exchanges. While YLDS is registered with the SEC, the company notes that this does not constitute regulatory approval or a guarantee against loss. The integration highlights the growing institutional demand for efficient collateral management solutions within the digital asset ecosystem. Ultimately, this shift reflects a maturing market where tokenized securities are becoming standard tools for optimizing institutional capital efficiency.
Key points
- ▸EDX Markets integrated Figure's YLDS security as collateral for institutional trading and clearing.
- ▸EDX will hold YLDS on its balance sheet to signal confidence in the asset.
- ▸The integration follows similar collateral programs launched by BlackRock, Franklin Templeton, and Binance.
- ▸YLDS is an SEC-registered security but lacks FDIC insurance or bank guarantees.
Background
Figure Technology Solution provides blockchain-based financial services, focusing on the tokenization of assets to improve capital efficiency. YLDS is a digital security designed to provide yield-bearing capabilities to institutional investors, allowing them to utilize underlying assets as collateral in digital asset markets.
Relevance
8/10