Figure Technology Solutions FIGR has become a medium confidence position for myself recently. They IPO’d back in September 2025 and had their first earnings report in early November.
Their product tokenizes real world assets for transactions through blockchain. Home Equity Lines of Credit (HELOCs) were the first product introduced. Currently they have 10 of the top 20 mortgage originators for HELOCs on their platform. There’s a bidding platform for the resulting assets, and the company itself is asset light.
They are expanding to consumer credit, small business loans, and even a tokenized stock exchange. The stock exchange is a separate confidential S1 with the SEC awaiting approval. The company detailed that product in a “Special Call” recently. Figure was additionally at the Nasdaq and Goldman Sachs investor conferences adding more details about their company.
On the financials side, this company presents a number of metrics that we would look for in a Saul style growth stock.
Revenue 156M, +56% yoy
Adj EBITDA 86M, +75% yoy
Net income 90M, +277% yoy
Targeting adj EBITDA margins above 60%
Another standout is the company had 168 partners on their S1 document, a number which is up to 250 just three months later. The customers include banks, mortgage originators, and credit unions. There’s expanding non-bank adoption amongst small businesses as well. Many of the analysts were surprised by over performance of the company on the first earnings call.
There is a lot more details about the company posted in the video above. Let me know if you have any feedback on the company!
Just now finding this thread and feeling confused about what they do. I see the words, but it makes no sense, how do you ‘tokenize’ a HELOC? Reading their website I am not finding info that tells me how they do anything other than some weird new way to finance stuff without tax paperwork?
There is a whole lot of jargon and buzz words on their site and it doesn’t give me feeling of understanding. This would be a red flag under the parts of Saul rules.
Ok, I took the time to listen to the video (not something I am usually inclined to do since I read faster than most people talk.).
You make a really good narrative and seems like you get all the threads lined up…but I still have no idea what tokenization does here.
Seems they are another AI lending platform, but do they then use the other products to secure the loans, or to create the payments for the loans? What is happening, do they do anything and it is all on the bank to fund the loans?
Anyway, you did a great job reviewing what info you could find.
Figure and its partner lenders issue loans using Figure’s software. The loans are recorded on Figure’s Provenance blockchain from origination. Originators then bundle loans into pools and sell them on Figure Connect marketplace to institutional investors (credit funds, insurance companies, etc.).
The tokenization enables faster settlement (days instead of weeks/months) when loans are sold, NOT continuous real-time trading. Figure Connect actually runs weekly auctions for loan pools - it’s not a liquid trading market like stocks. The blockchain mainly helps with instant settlement once a sale is agreed upon and provides transparent ownership records.
The first story has some metrics for their business and there are a few noticeable standouts,
Democratized Prime “matched offer balance” (cumulative) is 206M in December, +442% since November
Democratized Prime “borrower demand” is 246M in December up from 46M in November, +435% since November
Democratized Prime “available lender supply” is 213M up from 47M, +353% since November
Yields in circulation is 328M in December up from 110M in November
Q3 to Q4 consumer loan volume goes from 2469M to 2705M (Q4 is supposed to be the slow season)
These numbers show how fast the ramp up is in their Democratized Prime marketplace, and how fast the Yields stable coin is ramping up. I see it as a good sign that the borrower demand exceeds supply in those metrics meaning there is probably more room to rise.
Additionally, analysts are projecting 152M of revenue next quarter when their current quarter was 156M. This projection is likely based on Q4 being the slow season for the company but it seems this part of the business is accelerating in Q4 as well.
The second story details the progress on their blockchain stock market. They are launching their alternative trading system ATS for continuous trading. Note that the ATS can still be launched before the more formal SEC approval of the blockchain stock market.
That press release says the main advantages of the OPEN network are,
Blockchain registry, reduces cost and capital requirements by DTCC (Depository Trust & Clear Corporation)
Self custody, self settle ATS, eliminates need for custodial brokers, “radically democratizing access to trading”, reduces costs
Portfolio “margining” through DeFi to support higher advance rates and better cross collateralization across assets including crypto
Replacing existing stock broker locate process with transparent limit order book which directs loan economics back to shareholders not prime brokers
A few more points which stood out from the press release,
Market makers have been onboarded and enabled to provide market making
“Support from the dealer community”
“Buy-side pressure to drive growth in the open network of listed companies”
One of the details that stood out to me regarding the blockchain stock market was that companies like Blackrock are asking for this solution. It will allow them to transact with stocks much more efficiently. Figure is also placing their own stock on the blockchain and has others committed to doing so. This sounds like a company which has the potential for massive disruption in both traditional loans and the equities markets.
…certainly seems like a huge update in less than 2 weeks, likely based on the news you’ve summarized. Another great find of a company, @wpr101!
I compiled a table of their income statement from the last several quarters and tried to guess what Q4 would look like (in red). I think I will prove to be way off as I’m just at $138m or so…but it will be interesting to see what line items are off by how much!
@wpr101, Figure looks like an interesting company. I have been wondering for years when blockchain technology would reach general public applications for both lending and stock exchange trades.
Do you have any insights into the risks? Particularly, surrounding government legislation and competition? (apologies if you cover that in the video, I find videos and podcasts a waste of my time)
One observation, after looking at figure.com: The HELOC loan disburses 100% of the line of credit immediately. I would classify this as more accurately a home equity loan which remains open as a line of credit. Fantastic for both Figure and lenders, potentially horrible for borrowers. Perhaps a minor point, but I take this type of deception as a huge warning sign about the quality and morals of corporate management.
Unsurprisingly, the parent company of the NYSE has accounced they have developed a platform for 24/7 tokenized securities traiding.
It will be interesting to see if Figure can continue to develop and grow it’s blockchain stock exchange, sell it for a large sum or just get drubbed out of the market by bigger players.
Yesterday, I was fishing Lake Tahoe on a party boat on the MLK weekend. Not a great day but we took home four, 5 pound lake trout fish. A young guy introduced himself and said he was a mortgage processor for a broker working in Orange County Ca. I asked if he had ever heard of Figure Technology. He seemed surprised by my question. He told me they use Figure every day because the loans process in 7-10 days versus 30-40 days and it reduces costs by half. He said the simple mortgages where they have a worker with clear W2s is very easy and now more than 50% of their mortgages. The more complex applicants are still done the old way. This is a good anecdotal data point and helps me confirm my starting position last week. This is a crypto company generating profits using the technology for old school home loans.
I don’t think they’ve said anything about it, but when I first learned of blockchain the most natural application I could think of was title insurance. I must be missing something because so far as I am aware no company has gone after this market - yet. But while I thought it a natural fit for the technology, it now appears (to me) that Figure would be the most obvious company to add this functionality, you can’t write a mortgage without title insurance.
One of FIGR’s growth drivers is to develop a tokenized stock market that trades 24 hours a day and can use crypto assets to purchase or collateralize equity investments. NYSE just announced that they have developed a Tokenized Securities Platform which sounds very similar to what FIGR is proposing.
With the NYSE building a blockchain solution, I see it as a world of difference between one company announcing they are developing a product and a company that has a product up and running. The story linked above for Figure is announcing that the equity network OPEN is now live. NYSE has not even announced what blockchain their system will run on.
I also see it as a big gap between a native blockchain company and NYSE that is getting disrupted and looking to adapt. The Provenance blockchain has been running since 2018, and rebuilt once in 2021. It has also been working in production for a long time with other financial assets. This type of solution is not trivial at all, and I believe NYSE is years behind even setting up the basic infrastructure to provide this type of solution properly.
Hundreds of companies have made the claim for blockchains that address real world assets. It’s challenging to parse the language for these types of companies as they have similar jargon on their websites. What stands out to me with Figure is their financials show the growth of the system and they say they have a 75% market share of blockchain solutions for real world assets.
Digging in a bit more into the regulations, Figure’s platform is currently an SEC-registered ATS (alternate trading system), and it’s the “on-chain secondary” part of the business that is in the SEC pipeline. I’m not sure if the NYSE might have a leg up on getting approved faster because of their name though. Additionally, I saw that Coinbase was pushing back on some crypto legislation saying it doesn’t allow equities. From looking at the issue, it seems an equity based crypto offering needs to offer the same functionality as stock exchanges, such as shareholder voting. Coinbase was basically arguing in favor of an even more de-regulated free for all, where crypto based equity exchanges could make their own rules.
This statement from the SEC clarifies that tokenized securities are not exempt from existing regulations. It also distinguishes between two categories of tokenized securities, Issuer-sponsored and Third-party-sponsored. They say that third-party-sponsored do not necessarily grant all the rights of direct ownership. So my interpretation is to be careful about third-party-sponsored tokens.
My understanding is that FIGR is doing Issuer-sponsored tokens, starting with issuing a tokenized version of their own stock. This sets the example for other companies to follow. Here is a good summary of the advantages of FIGR’s tokenized securities from an LLM:
“On January 14, 2026, Figure launched the On-Chain Public Equity Network (OPEN), a platform for issuing, trading, and settling equities natively on blockchain—meaning the shares are registered directly on-chain rather than as tokenized wrappers of traditional Depository Trust & Clearing Corporation (DTCC) securities. This enables peer-to-peer transfers, continuous trading, DeFi-style lending against shares, and reduced reliance on intermediaries like prime brokers.”
I think this is a positive development for FIGR as it provides guidance on the regulatory side as well as pointing out the differences between Issuer-sponsored and Third-party-sponsored tokens.
I have rewritten in my words as I apparently got caught in the new Saul board rule of no AI generated content.
A crucial concept in cybersecurity is non-repudiation. It ensures that parties involved in a transaction or communication cannot deny their involvement later. It provides proof of the origin and integrity of data, making it essential for secure digital interactions. A couple mechanisms provide this insurance; Master Securityholder File and the Recordkeeping Transfer Agent. Figure Technology Solutions, Inc. (FIGR) operates its own registered transfer agent. Figure Equity Solutions, Inc. is the entity registered with the SEC as a Transfer Agent. Unlike traditional agents that use legacy databases, Figure Equity Solutions uses the Provenance Blockchain as the “source of truth” for the Master Securityholder File. The Recordkeeping Transfer Agent maintains the Master Securityholder File that supports a record of owners, number of shares, dates buy/sell, tax ID/SSN, dividend disbursement, proxy voting, and all credits/debits.
Hope this adds some color without getting too deep into the technical weeds.
Friday they preannounced 158 - 162m revenue (so my estimate was pretty bad!) for this quarter. This would be 93% YoY growth at the top end. The stock hasn’t soared since, which maybe makes sense as analysts were already expecting ~152m (as of my Dec post). The interesting thing will be to hear their comments about the year to come (though I don’t believe they give a guide), and to see how the revenue numbers break down between business segments when they report the whole story on Feb 26!
Also, they announced a stock offering, and I was confused because it’s for less than 5 million shares…not much in the grand scheme, and because they also have plenty of cash on the balance sheet. The pricing came out yesterday at $32/share, which seemed odd too, as their shares were at $35+. But this is an odd transaction…
This is a great discussion, as is the board in general, for which I am very grateful.
My potential concern with this company is that the blockchain they use is competing against Canton, which is a nonprofit foundation that provides a foundation for this tech. It was created by a few major banks and is a potential competitor. The big banks or another player may create an alternative to Provenance that runs on Canton and gets wider adoption.
Also, the current main driver of revenue seems to be origination. I understand that the growth direction/potential is blockchain settlement, but I’m wondering about the risks of being an originator in the short term. That exposes them to the credit market, which has its own risks.
I definitely think they have a good shot at capturing enough small lenders / mid tier / private credit so that they become the Visa of this tech. Execution has been amazing so far and they are in a good cash position. Have added this to my starter positions and will watch carefully the ER.
Lastly, I’m a newcomer to this area and would love comments on why I’m wrong.
I’m not an expert here, but here is my understanding, from research into blockchain technology a few years ago.
Think of blockchain technology in this scenario as holding a record of who owns which shares in a company. Potentially, also holding the contracts related to those shares (buy and sell transactions for both shares and options). Depending on implementation, this either greatly reduces the need for clearinghouses or eliminates them entirely.
Being blockchain-native simply means that company shares are listed directly on a blockchain as the “source of truth” for who owns which shares. If the shares are not blockchain-native, the blockchain data holds information from the current stock market / clearinghouse / brokerage system for who owns which shares. This is a likely transition step, but will have only mild changes to the current system.
Stock trading seems to me a near perfect use case for blockchain technology. I fully expect blockchain technology to be the basis of all stock share trades eventually. As an investment, I am concerned that SEC regulations could (and maybe should?) interfere.
While I firmly believe this will be the future foundation technology of stock trading, I am not considering Figure’s OPEN platform when I analyze the company for investment. More, just an R&D project to keep an eye on for future growth.
If anyone has a better understanding of what Figure is doing here, please share! I have no problem being proven wrong with any of the above…
