On August 19, Figure Technology Solutions (FTS) — the financial technology company founded by SoFi co-founder and former CEO Mike Cagney — has publicly filed an IPO application with the U.S. Securities and Exchange Commission (SEC), planning to trade on the Nasdaq under the symbol FIGR, officially kicking off the listing process. Setting itself apart from the conventional playbook 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 loans.

Mike Cagney previously led SoFi to disrupt the landscape of internet finance, and now he aims to once again overturn the business model on which traditional banks rely, this time with blockchain. He stated, "The funding validates our vision of redefining the capital markets leveraging blockchain technology, and we are also realizing real benefits by deploying blockchain in our lending and capital markets businesses."

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

In the home loan market, Figure has directly targeted the Achilles' heel of traditional banks with speed and transparency. Previously, applying for a HELOC loan could take weeks or even months, whereas on Figure's platform, users can get approved in as fast as 5 minutes through a 100% online application process, with funding within 5 days.

So far, Figure has helped over 200,000 households unlock $16 billion in home equity, propelling itself to become one of America's largest non-bank HELOC providers. What's intriguing is that this speed is not achieved through "simplified underwriting" but rather thanks to Figure's proprietary Provenance blockchain. This is a public, PoS blockchain based on the Cosmos SDK that supports instant finality, making settlements secure and transparent as they are irreversible once confirmed.

Provenance not only establishes a standardized, tamper-proof on-chain record for each loan but also seamlessly integrates 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 Loans: HODL with Liquidity

If HELOC helped Figure establish itself in the traditional mortgage field, then cryptocurrency collateralized loans are its way of making a mark in the digital asset race.

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

All collateral assets will be held in a decentralized, segregated Multiparty Computation (MPC) custody wallet, and customers can directly view the on-chain address, ensuring funds are never misused. This means that even while using BTC or ETH as collateral for a loan, you can comfortably continue to "Hold On for Dear Life (HODL)," while the cash on hand can be used for debt repayment, home purchase, renovations, or even directly increasing holdings of more crypto assets.

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

Active Integration into the Crypto Community: RWA and Stablecoin Dual-Drive

Figure's ambition extends far beyond mortgages and crypto loans. Leveraging the underlying technology of the Provenance blockchain, in the total $277.4 billion tokenized private credit market, Figure has issued loans totaling $13 billion, with an active loan amount of $11 billion, a utilization rate exceeding 84%. As seen on the rwa.xyz website, Figure ranks first in the private credit category. Whether it's mortgage assets or private credit, Figure can digitize and programmable them and achieve standardized issuance and trading on-chain. These on-chain assets are naturally compatible with decentralized finance (DeFi) protocols, allowing funds that were originally locked in the traditional financial system to circulate, collateralize, and reuse globally, blurring the boundaries between TradFi and DeFi.

Meanwhile, the YLDS stablecoin launched by Figure Markets has become the world's first SEC-approved interest-bearing stablecoin, pegged 1:1 to the US dollar, with interest calculated at SOFR-50bp, yielding an annualized interest rate of approximately 3.79%. YLDS not only boasts impeccable compliance but also offers users stable returns that can be used for payments, cross-border settlements, collateralized financing, and many other scenarios. This "RWA + Stablecoin" combination not only locks in real asset and digital asset market growth for Figure but also positions it at the gateway to the next multi-trillion-dollar market.

Capital Structure and IPO Preparation

In just a few years, Figure has successfully completed multiple funding rounds, with investors including DCM Venture, Ribbit Capital, Morgan Creek Digital, and others. The company has also secured several billion dollars in debt financing from Jefferies, JPMorgan Chase, and others. According to market sources, prominent Wall Street investment banks such as Goldman Sachs and JPMorgan Chase have appeared in the underwriting lineup for this IPO.

Prior to this, Figure restructured its internal architecture, incorporating the 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 is also impressive. In the first half of 2025, the company achieved a revenue of $1.91 billion, a 22.4% year-over-year growth, and 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.

Figure emphasized in its prospectus that its core strength lies in injecting vitality into a long-term illiquid market using blockchain. Through asset tokenization, the company aims to reduce financing costs and break down traditional financial barriers. After the IPO, CEO Cagney will retain majority voting rights, ensuring that the strategic direction remains in his hands. While this dual-class share structure can safeguard the long-term vision, it has also sparked discussions about shareholder rights.

It is worth noting that as early as 2021, Figure raised $200 million at a valuation of up to $32 billion. Although the valuation for this IPO has not been disclosed, analysts are generally optimistic about its market prospects: Figure, now back to profitability, is strategically positioned at the intersection of fintech and blockchain, attracting significant capital influx.

In his IPO statement, Cagney stated: "The value of blockchain far exceeds financial disruption. By bringing originally illiquid assets and historical data onto the chain, we can inject vitality into unprecedented markets. This IPO is just one small step in blockchain's journey to the capital markets panorama."

Conclusion

2025 may well be remembered as the Year of Coins and Stocks. From the emergence of various "altcoin versions of microstrategies" to CRCL creating a frenzy myth with a 10x increase in value one month after IPO, to top crypto companies like Kraken eagerly awaiting opportunities, the convergence of the capital market and the on-chain market is venturing into deep waters.

Today, everyone is waiting for that true RWA whale - an entity that can bring trillions of real-world assets onto the chain and redefine the market landscape like Bitcoin and Ethereum. Figure is sprinting at full speed towards this position, and its next move may just be part of history.

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