On August 19, Figure Technology Solutions (FTS), a fintech company founded by Mike Cagney, co-founder of SoFi and former CEO, has publicly submitted an IPO application to the U.S. Securities and Exchange Commission (SEC), planning to list on NASDAQ with the ticker FIGR, officially launching the listing process. Unlike traditional financial institutions that follow conventional methods, Figure was built from the ground up with blockchain as its core, redefining new financial paradigms for mortgages and crypto-backed loans using blockchain.

Mike Cagney once led SoFi to create a wave in the internet finance sector. Now, he aims to disrupt the business models that traditional banks rely on using blockchain. He stated, "The capital has validated our vision of redefining capital markets using blockchain technology, and we are already gaining real benefits by adopting blockchain in our loan and capital market operations."

Entering the Mortgage Market: The Largest Non-Bank HELOC Provider in the United States

In the mortgage market, Figure directly targets the weaknesses 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 apply 100% online, get approved in as little as 5 minutes, and have funds disbursed within 5 days.

To date, Figure has helped over 200,000 families release $16 billion in home equity, becoming one of the largest non-bank HELOC providers in the United States. More intriguingly, this was not achieved by simplifying the review process to gain speed, but rather thanks to Figure's self-developed Provenance blockchain. This is a public, PoS blockchain based on the Cosmos SDK, supporting instant finality, where once confirmed, it cannot be rolled back, ensuring the security and transparency of loan settlements.

Provenance not only establishes standardized, tamper-proof on-chain records for each loan, but also directly connects to Figure Connect, a native on-chain private capital market platform. Through it, loan originators and investors can match, price, and settle on-chain, compressing the entire process from traditional months to days, almost redefining the efficiency of private credit circulation.

Crypto-Backed Loans: Achieving HODL and Liquidity Simultaneously

If HELOC allowed Figure to establish a foothold in the traditional mortgage market, then crypto-backed loans represent its bold move in the digital asset arena.

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

All collateral assets are stored in decentralized, isolated multi-party computation (MPC) custodial wallets, allowing customers to directly view on-chain addresses, ensuring that funds are never misappropriated. This means that even if you are borrowing using BTC or ETH as collateral, you can confidently continue "HODLing" while using the cash for debt repayment, buying a house, renovation, or even adding more crypto assets directly.

This design is especially popular during bull markets — investors can release liquidity without selling their assets, while retaining the potential for asset appreciation; during bear markets, they can obtain emergency funds through collateral, avoiding forced liquidation.

Actively Integrating into the Crypto World: Dual Drivers of RWA and Stablecoins

Figure's ambitions go far beyond mortgages and crypto loans. Leveraging the underlying technology of the Provenance blockchain, Figure has issued a total of $13 billion in loans in the tokenized private credit market, which totals $27.74 billion, with active loan amounts reaching $11 billion, and a utilization rate exceeding 84%. On the rwa.xyz website, it is clear that Figure is firmly at the top in the private credit category. Whether it is mortgage assets or private credit, Figure can digitize, programmable them, and achieve standardized issuance and trading on the chain. These on-chain assets are inherently compatible with decentralized finance (DeFi) protocols, enabling funds previously locked in traditional financial systems to circulate, collateralize, and be reused globally, completely blurring the lines between TradFi and DeFi.

At the same time, YLDS stablecoin launched by Figure Markets has become the world's first interest-bearing stablecoin approved by the SEC, pegged 1:1 to the US dollar, and interest is calculated based on SOFR-50bp, with an annualized yield of approximately 3.79%. YLDS not only has impeccable compliance but also provides users with stable returns, applicable to multiple scenarios such as payments, cross-border settlements, and collateral financing. This combination of "RWA + stablecoin" not only locks in Figure's dual incremental opportunities in the real asset and digital asset markets, but also places it at the entrance of the next multi-trillion-dollar market.

Capital Arrangements and IPO Preparations

Within a few years, Figure has completed multiple rounds of financing, with investment institutions including DCM Ventures, DST Global, Ribbit Capital, Morgan Creek Digital, and has received billions of dollars in debt credit from Jefferies and JPMorgan. According to market reports, the underwriting team for this IPO also includes top Wall Street investment banks such as Goldman Sachs and JPMorgan.

Previously, Figure restructured its internal architecture, incorporating the loan entity Figure Lending LLC into the Figure Technology Solutions brand system, and introduced a senior management team with extensive regulatory and corporate governance experience, paving the way for the IPO.

The financial performance is also impressive. In the first half of 2025, the company's revenue reached $191 million, an increase of 22.4% year-over-year; net profit was $29 million, a significant turnaround from a $13 million loss in the same period last year. This not only indicates that Figure has moved out of the initial expansion loss cycle, but also shows that the demand for blockchain lending and financial services is rapidly growing.

Figure emphasized in its prospectus that its core advantage lies in using blockchain to inject vitality into long-term illiquid markets. Through asset tokenization, the company hopes to reduce financing costs and break down traditional financial barriers. After the IPO, CEO Cagney will retain most of the voting rights, ensuring strategic direction remains in his hands. This dual-class share structure may ensure long-term vision, but it has also sparked discussions about shareholder rights.

Notably, Figure completed a $200 million funding round as early as 2021, with a valuation of $3.2 billion. Although the valuation for this IPO has not been disclosed, analysts generally have a positive outlook on its market prospects: Figure, which has returned to profitability, is precisely at the intersection of fintech and blockchain, and is now experiencing the best window for capital attention.

Cagney stated in the prospectus: "The value of blockchain extends far beyond disrupting finance. By putting illiquid assets and historical data on the blockchain, we can inject vitality into unprecedented markets. This IPO is just a small step toward the full picture of blockchain entering the capital market."

Summary

2025 may be remembered as the year of crypto stocks. From the emergence of various "Satoshi-style microstrategy clones," to CRCL creating a 10-fold frenzy within a month after its IPO, to leading crypto companies like Kraken preparing to make moves, the integration of capital markets and on-chain markets is entering deeper waters.

Now, everyone is waiting for the true RWA whale — an entity capable of moving trillions of real-world assets onto the blockchain and redefining market structures like Bitcoin and Ethereum. Figure is accelerating towards this position, and its next step may become part of history.