On August 19, Figure Technology Solutions (FTS) — the fintech company founded by SoFi co-founder and former CEO Mike Cagney — has filed an IPO application with the U.S. Securities and Exchange Commission (SEC), planning to trade on Nasdaq under the symbol FIGR, officially initiating the listing process. Unlike the conventional approach of traditional financial institutions, Figure has been blockchain-native since its inception, using blockchain to reshape the financial paradigm of home loans and crypto-backed mortgages.

Mike Cagney previously led SoFi to a boom in the fintech sector, and now he aims to once again disrupt the business model that longstanding banks rely on, this time with blockchain. He stated, "Funds validate our vision of redefining the capital markets using blockchain technology, and we are truly benefiting from adopting blockchain in its lending and capital markets operations."

Starting from Home Loans: America's Largest Non-Bank HELOC Provider

In the home loan market, Figure has directly targeted the weak spots of traditional banks with speed and transparency. In the past, applying for a HELOC loan could take weeks or even months, but on Figure's platform, users can be approved in as quickly as 5 minutes through a 100% online application, with funding within 5 days.

So far, Figure has helped over 200,000 families unlock $16 billion in home equity, propelling itself into one of America's largest non-bank HELOC providers. What's even more intriguing is that this speed is not achieved through "simplified underwriting" but rather through Figure's proprietary Provenance blockchain. This is a public, PoS blockchain based on Cosmos SDK that supports instant finality, ensuring once confirmed, transactions are irrevocable, guaranteeing the security and transparency of loan settlements.

Provenance not only establishes a standardized, tamper-proof on-chain record for each loan but also directly interfaces with Figure's in-house Figure Connect — an on-chain private capital markets platform. Through it, loan originators and investors can match, price, and settle on-chain, compressing the entire process from traditional months to days, effectively redefining the efficiency of private credit circulation.

Cryptocurrency Collateralized Loan: HODL and Liquidity Combined

If the HELOC helped Figure establish itself in the traditional mortgage industry, then the Cryptocurrency Collateralized Loan is its way of showcasing its prowess in the digital asset arena.

In this business, customers can use Bitcoin (BTC) or Ethereum (ETH) as collateral to borrow cash at up to 75% Loan-to-Value (LTV) ratio, with interest rates as low as 8.91% (50% LTV), and no credit score requirements.

All collateral assets are held in a decentralized, secure Multiparty Computation (MPC) custodial wallet, allowing customers to view the on-chain address directly to ensure that funds are never misused. This means that even as you use BTC or ETH as collateral for a loan, you can confidently continue to "HODL," while the cash on hand can be used for debt repayment, home purchase, renovations, or even directly increasing your holdings of more crypto assets.

This design is particularly popular in a bull market—investors can unlock liquidity without selling their assets, all while retaining the potential for asset appreciation; in a bear market, it enables obtaining emergency funds through collateral to avoid forced liquidation.

Active Engagement in the Crypto Space: RWA and Stablecoin Driving Forward

Figure's ambition extends far beyond mortgages and crypto loans. Leveraging the underlying technology of the Provenance blockchain, in the $277.4 billion tokenized private credit market, Figure has disbursed loans totaling $13 billion, with an active loan amount of $11 billion, a utilization rate of over 84%. As seen on the rwa.xyz website, Figure holds the top position in the private credit category. Whether they are mortgage assets or private credit, Figure can digitize and programmatize them, enabling standardized issuance and trading on-chain. These on-chain assets are inherently compatible with decentralized finance (DeFi) protocols, allowing funds previously locked in the traditional financial system to circulate, collateralize, and be reused globally, blurring the lines between TradFi and DeFi.

Meanwhile, Figure Markets' YLDS stablecoin has become the world's first SEC-approved interest-bearing stablecoin, pegged 1:1 to the U.S. dollar, with interest calculated based on SOFR-50bp, offering an annualized yield of approximately 3.79%. YLDS not only boasts impeccable compliance but also provides users with stable returns, suitable for payments, cross-border settlements, collateralized financing, and various other use cases. This "RWA + Stablecoin" combination not only locks in real assets for Figure but also positions it at the gateway to the next multi-trillion-dollar market.

Capital Structure and IPO Preparation

Over the past few years, Figure has successfully completed multiple rounds of financing with investors including DCM Ventures, DST Global, Ribbit Capital, Morgan Creek Digital, and has also secured several billion dollars in credit facilities from Jefferies, JPMorgan, among others. According to market sources, the IPO underwriters this time include big names from Wall Street such as Goldman Sachs and JPMorgan.

Prior to this, Figure underwent internal restructuring, integrating its lending entity Figure Lending LLC into the Figure Technology Solutions brand and bringing in a senior management team with extensive regulatory and corporate governance experience to pave the way for the IPO.

The financial performance has also been impressive. In the first half of 2025, the company achieved a revenue of $1.91 billion, a 22.4% year-over-year growth; a net profit of $29 million, marking a significant turnaround from a $13 million loss in the same period last year. This not only indicates that Figure has emerged from the early-stage expansion loss cycle but also demonstrates the rapidly growing market demand for blockchain lending and financial services.

In its prospectus, Figure emphasizes its core strength in revitalizing markets with long-term illiquidity through blockchain. By tokenizing assets, the company aims to reduce financing costs and break down traditional financial barriers. Post-IPO, CEO Cagney will retain a majority of the voting rights, ensuring control over the strategic direction. While this dual-class share structure can safeguard the long-term vision, it has also sparked discussions about shareholder rights.

It's worth noting that as early as 2021, Figure raised $200 million at a valuation of $32 billion. Although the valuation of this IPO has not been disclosed, analysts are optimistic about its market prospects: Figure, now back in profit, is at the intersection of fintech and blockchain, positioned to attract capital in the most favorable window.

In the IPO filing, Cagney stated: "The value of blockchain far exceeds disrupting finance. By putting previously illiquid assets and historical data on the chain, we can inject vitality into unprecedented markets. This IPO is just a small step in blockchain's journey to the capital market panorama."

Conclusion

In 2025, perhaps will be remembered as the Year of Coin-Stock-DeFi. From various "altcoin version of microstrategy" emerging out of nowhere, to the CRCL creating a crazy legend of 10x in value just one month after IPO, to top crypto enterprises like Kraken eager to make their move, the convergence of the capital market and the on-chain market is entering deep waters.

Today, everyone is eagerly awaiting the true RWA whale - an entity that can bring trillions of real-world assets onto the blockchain and redefine the market landscape like Bitcoin and Ethereum. Figure is sprinting full speed ahead toward this position, and its next move may indeed become part of history.

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