A&O Shearman advises on registered security/stablecoin offering for Figure Certificate Company

YLDs are debt securities that FCC will issue and redeem using blockchain technology and which will also be transferable on the blockchain in peer-to-peer and registered alternative trading system (ATS) transactions. YLDs are the first U.S. registered debt security stablecoin that offers interest on invested principal and is transferable in both peer-to-peer transactions and in transactions on a registered ATS. In addition, FCC is the first company to register with the SEC as a face-amount certificate company under the U.S. Investment Company Act of 1940 in over a quarter century and only the second currently operating face-amount certificate company in the U.S.

The A&O Shearman team was led by U.S. financial services regulatory partner Susan Gault-Brown, and included counsel Tom Majewski, of counsel Paul Schreiber, associates Austin Law, and SY Ro from funds and asset management; partner Barbara Stettner, of counsel Bill Satchell, associate Joshua Kim, and law clerk Dominic Petric from U.S. financial services regulatory; and partners Christopher Forrester and Yian Huang from U.S. capital markets. 

Partner Susan Gault-Brown commented: "We are thrilled to have assisted Figure with this innovative and market-leading offering, which demonstrates the ability to use blockchain-enabled registered securities as methods of payment. We look forward to continuing to support Figure and other clients in exploring the opportunities and challenges of digital asset securities offerings."