Figure’s $1B IPO Tokenizes RWA, Speeds Blockchain Mortgages
Figure Technology Solutions, led by SoFi co-founder Mike Cagney, has confidentially filed for a $500M–$1B Nasdaq IPO. The SEC Form S-1 spotlights its Provenance blockchain mortgage platform, slashing traditional five-week HELOC processing to under five days with approvals in minutes.
In 2024, Figure reported a 30% adjusted EBITDA margin and issued over $16B in home equity loans alongside partners including Goldman Sachs and JPMorgan. It has tokenized $355M of HELOC-backed securities on-chain, earning an S&P AAA rating.
The firm recently merged with Figure Markets, which issues YDLS, a yield-bearing stablecoin serving as a tokenized money market fund. This expansion underscores its focus on real-world asset (RWA) tokenization.
This IPO follows a growing pro-crypto regulatory trend for blockchain mortgage platforms, mirroring listings by Circle, BitGo and Grayscale. Traders should monitor regulatory feedback, IPO pricing signals and market sentiment as indicators for RWA adoption.
Key challenges include navigating multi-state and federal compliance, sustaining loan demand amid high interest rates and safeguarding user data and on-chain assets.
Neutral
The confidential filing for a $500M–$1B IPO underscores growing institutional interest in blockchain mortgage and RWA tokenization. While it could boost long-term adoption of Figure’s YDLS stablecoin and Provenance platform, stablecoin prices are designed to remain pegged, limiting direct price volatility. Regulatory clarity and market sentiment will play a bigger role, suggesting a neutral short-term price impact on YDLS but potential bullish momentum for sector infrastructure.