Smarter Savings: Unlock Up to 8% APY on Stablecoins with Forward Vault

Imagine a way to grow your savings with the confidence of traditional finance and the innovation of blockchain. With up to 8% APY on stablecoins, Forward Vault by Figure Markets combines the control of self-custody with the stability of real-world asset backing.

This is what sets Forward Vault apart: it implements a strategy backed by established assets like home equity line of credits, it provides a solid foundation and added stability for growing your stablecoins. This unique combination of traditional finance principles and blockchain innovation offers an opportunity for those seeking growth with reduced exposure to market volatility.

Forward Vault: a smarter way to earn APY on stablecoins

Forward Vault provides a unique opportunity for crypto investors seeking both growth and flexibility with their stablecoins. It enables users to earn APY on idle cash by placing it in a liquid, real-world asset-backed structure. This approach not only offers up to 8% APY on stablecoins but also allows eligible users to leverage their positions as collateral for trading on Figure Markets’s exchange.

For active traders, this collateral feature can support various strategies while allowing their stablecoins to generate returns. Forward Vault further enhances the user experience and provides streamlined onboarding, recurring purchase options, and monthly interest distributions, allowing for steady returns without the need for constant management. This makes it an appealing choice for both seasoned crypto investors and those looking for a stable way to earn APY in a volatile market.

Behind the scenes of Forward Vault

Forward Vault stands out by backing investments with real-world assets, specifically U.S. home equity lines of credit (HELOCs), to offer an opportunity to achieve steady growth on stablecoins. Here’s how it all works:

1. HELOCs securing investment of stablecoins

Forward Vault leverages a unique approach by backing investments with HELOCs. Think of a HELOC as a type of credit line that lets homeowners borrow against the equity they’ve built up in their homes. When homeowners borrow from this credit line, they pay interest on the amount borrowed.

2. How Forward Vault delivers competitive returns

Forward Vault generates returns by using investor subscriptions to make collateralized loans to Figure Lending LLC, the number one non-bank HELOC lender in the U.S., secured by home equity lines of credit (HELOCs). In return, Figure Lending LLC pays Forward Vault interest at a rate of SOFR plus a margin of basis points.

SOFR is a benchmark index for determining rates at which banks would be willing to lend cash with the U.S. Treasuries as collateral in the overnight repo market. Forward Vault automatically passes the interest accruals to investors, minus fees.

3. Efficiency through blockchain technology

The use of blockchain technology allows Forward Vault to accrue daily returns, a feature not easily achieved through traditional financial systems. Users can request a withdrawal at any moment, allowing them to access their invested cash seamlessly. Additionally, earnings remain intact, with no loss of what has already been gained upon withdrawal. By streamlining fund access and enhancing security, blockchain adds significant appeal to the product for investors seeking both flexibility and transparency.

4. Anchoring returns to RWA  

By anchoring investments with assets like home equity lines of credit, Forward Vault offers a reliable way to gain APY on stablecoins with moderate risk. These types of assets have a long-standing role in traditional finance, and may provide a degree of stability in an unpredictable market. This approach allows investors to grow their stablecoin investments confidently, knowing they’re backed by assets with real world value.

Invest smart with Figure Markets

Figure Markets’s Forward Vault provides a reliable and transparent approach to earning APY on stablecoins. With a strong focus on self-custody, Figure Markets prioritizes user control over assets and transparency. Unlike traditional centralized exchanges that have experienced issues like asset freezes and restrictions, Figure Markets emphasizes transparency and user control at every step.

Forward Vault also sets itself apart by offering eligible users up to 8% APY on stablecoins, a rate that outpaces typical yields on many traditional centralized exchanges, where APYs are often capped around 5%.  Backed by real-world assets, Forward Vault provides a stable, reliable approach that combines the best of traditional finance and DeFi for those seeking opportunities for growth in a volatile market.

Ready to make the smarter choice for your stablecoin holdings?

Visit Figure Markets to learn more and subscribe to Forward Vault today!