EDX Markets adopts Figure YLDS as collateral and treasury

Margin posted on EDX Markets no longer has to sit dead: the institutional crypto exchange backed by Citadel Securities, Fidelity and Charles Schwab has integrated Figure's YLDS yield-bearing digital security as both collateral and a treasury asset, according to Ledger Insights. YLDS holders earn SOFR minus 35 basis points—around 3.3% today—while the token holds a dollar peg, so a margin balance on EDX now earns a return instead of earning nothing as USD or USDC. For an institutional trader, a dollar-pegged asset that pays 3.3% beats one that pays nothing.

Figure launched YLDS in February 2025 and named exchange collateral among its first use cases, so Mike Cagney, the firm's co-founder and executive chairman, called the EDX adoption "that thesis playing out in practice"—validation rather than experiment. What Ledger Insights did not report is how much YLDS EDX will hold or whether the exchange has accepted the asset at scale.

The treasury-asset half of the announcement is quieter, suggesting EDX is treating YLDS as a cash-equivalent on its own books rather than merely as margin posted by traders. That is a second proof point for Figure, and a harder one, because it puts an exchange's balance sheet behind a tokenized security. Figure took YLDS from launch in February 2025 to adoption in August 2026, about 18 months, and while the rate moves with short-term dollar funding costs because it is tied to SOFR, at today's level it is a real return on idle margin.

YLDS is a digital security with a dollar peg and a spread over SOFR, which makes the distinction from a stablecoin academic: it is a stablecoin with a profit motive attached. The GENIUS Act's redemption test opened a stablecoin wrapper gap, as this publication has argued, and YLDS occupies exactly that territory with a yield.

Collateral is the use case that pays for itself in tokenization. A tokenized treasury in a wallet is an asset; a tokenized treasury posted to a regulated exchange is working capital. The next test is which venues follow EDX and hold YLDS as balance-sheet acceptable collateral, and whether stablecoin issuers answer with yield-bearing versions of their own. If they do, the argument shifts from whether tokenized collateral works to who can pay the most while keeping a peg. The next venue to follow EDX will show whether this is a one-off integration or the template for how exchanges hold cash.