BitGo expanded its institutional custody platform to support YLDS, the SEC-registered yield-bearing digital security issued by Figure Certificate Company. The digital asset infrastructure provider said YLDS can now be held through BitGo Bank & Trust, its federally chartered digital asset trust bank regulated by the Office of the Comptroller of the Currency. The launch combines SEC-registered digital securities with qualified custody infrastructure designed for institutional investors, highlighting the growing convergence of traditional securities regulation and blockchain-based financial products.
BitGo Bank & Trust Provides Qualified Custody for YLDS
YLDS is structured as a tokenized face-amount certificate issued by Figure Certificate Company, a subsidiary of Figure Technology Solutions. Unlike a stablecoin, the instrument is a registered fixed-income security that accrues yield daily at the Secured Overnight Financing Rate, or SOFR, minus 35 basis points.
Holders may redeem the security monthly either for U.S. dollars or for additional YLDS, subject to the terms of the offering documents. According to Figure, the product does not require staking or lock-up periods, allowing institutions to earn yield while maintaining liquidity.
BitGo said institutional clients holding YLDS through BitGo Bank & Trust will benefit from qualified custody, including institutional-grade security controls and offline key management. The company added that the security is designed to continue accruing its designated yield while held in custody.
Mike Belshe, Chief Executive Officer and Co-founder of BitGo, said regulated infrastructure remains critical to institutional adoption of digital assets. "Institutional adoption of digital assets depends on infrastructure that meets the standards of regulated financial markets. By supporting qualified custody for registered digital securities such as YLDS, BitGo is helping institutions access emerging on-chain financial products through trusted, regulated infrastructure."
Mike Cagney, Executive Chairman and Co-founder of Figure, said the product was designed to combine regulated fixed-income investing with blockchain settlement. "YLDS is built for regulated capital looking to benefit from onchain settlement speed. As the only onchain SEC-registered debt security, YLDS provides stable yield with the liquidity and transferability of a stablecoin. With BitGo's support for YLDS, we will meet institutions where they are, making it easier to put capital to work within infrastructure they trust."
YLDS Structured as Tokenized Face-Amount Certificate with Daily Yield
Unlike conventional digital assets, YLDS represents a registered debt security issued under U.S. securities laws rather than a cryptocurrency or payment token. While transfers occur using blockchain infrastructure, ownership remains subject to the legal framework governing registered securities.
The structure illustrates how tokenization is increasingly being applied to traditional financial instruments rather than creating entirely new asset classes. By recording ownership and settlement on blockchain infrastructure, issuers aim to reduce settlement times, improve operational efficiency, and simplify transfers while maintaining regulatory oversight.
Qualified custody has become an important component of that evolution because many institutional investors are required to hold securities with regulated custodians. Without custody providers capable of supporting tokenized securities, adoption by banks, asset managers, pension funds, and other regulated institutions would remain limited.
Custody Providers Expand Support for Tokenized Securities
The addition of YLDS reflects a broader shift in digital asset infrastructure toward regulated financial products designed for institutional investors rather than retail cryptocurrency trading.
Custody providers increasingly compete on their ability to support tokenized securities, stablecoins, digital bonds, private credit instruments, and other blockchain-based financial assets alongside traditional cryptocurrencies. Regulatory status has become a key differentiator as institutions seek infrastructure that satisfies both digital asset security requirements and existing financial regulations.
BitGo already provides custody, settlement, trading, financing, staking, and wallet services through multiple regulated entities, including BitGo Bank & Trust, the first federally chartered digital asset trust bank owned by a publicly traded company. The addition of YLDS extends that offering into SEC-registered digital securities, further broadening the range of blockchain-based assets available through regulated custody.
For Figure, expanding custody support through established institutional providers removes another barrier to adoption as tokenized fixed-income products compete with traditional cash management and short-duration investment vehicles.
FAQ
What did BitGo announce regarding YLDS custody?
BitGo expanded its institutional custody platform to support YLDS, the SEC-registered yield-bearing digital security issued by Figure Certificate Company. YLDS can now be held through BitGo Bank & Trust, its federally chartered digital asset trust bank regulated by the Office of the Comptroller of the Currency.
How does YLDS generate yield for holders?
YLDS is structured as a tokenized face-amount certificate that accrues yield daily at the Secured Overnight Financing Rate, or SOFR, minus 35 basis points. Holders may redeem the security monthly either for U.S. dollars or for additional YLDS, subject to the terms of the offering documents. The product does not require staking or lock-up periods.
Why is qualified custody important for tokenized securities like YLDS?
Qualified custody has become an important component because many institutional investors are required to hold securities with regulated custodians. Without custody providers capable of supporting tokenized securities, adoption by banks, asset managers, pension funds, and other regulated institutions would remain limited.
