Figure Technology Solutions, which launched its public offering recently, has marked a notable entry into the financial services sector using blockchain technology. The company set its initial public offering price at approximately $25 per share, successfully raising $787.5 million and seeing an impressive first-day closing price of $31.11, representing a 24% increase. Currently, shares are trading at around $37.
Co-founded in 2018 by former SoFi CEO Mike Cagney, Figure is focused on leveraging blockchain to address real-world financial challenges rather than merely engaging in the speculative aspects of cryptocurrencies. Initially concentrating on home equity lines of credit (HELOCs), Figure has streamlined the loan funding process, allowing for quicker and more efficient services than traditional banks. Over the past several years, the company has financed over $16 billion in loans. Its offerings now encompass an array of financial products, including partner-branded and direct-to-consumer HELOCs, crypto-backed loans, and plans to expand into auto loans and small business financing.
A hallmark of Figure’s approach is its proprietary Provenance Blockchain, which underpins all operations. Instead of relying on popular cryptocurrencies like Bitcoin or Ethereum, this technology enables fast, efficient transactions across the lending process, from origination to securitization. The company generates revenue through various channels, such as loan origination fees and profits from loan sales, and is strategically positioned to capitalize on financial inefficiencies by reducing the number of intermediaries involved in lending, enhancing security and transparency.
Financially, Figure is entering the public market on a strong note. For the first half of 2025, the company reported revenues of $190.6 million, exceeding the previous year’s $156 million, along with a noteworthy turnaround in net income—amassing $29.1 million compared to a loss of $15.6 million in the same period the prior year. The company’s customer base is composed primarily of prime borrowers, with average FICO scores surpassing 750, contributing to a solid credit profile. In the preceding twelve months ending June 30, 2025, Figure facilitated nearly $6 billion in home equity lending, representing a 29% increase year-over-year. With a market capitalization nearing $8 billion, the stock is currently valued at around 20 times its run-rate revenues—though high, this valuation reflects confidence in Figure’s growth potential, particularly given the massive $35 trillion in outstanding U.S. home equity.
Figure’s mission centers on democratizing access to financial services, utilizing blockchain to cut costs and enhance efficiency. Nonetheless, the move into public markets carries inherent risks, including regulatory scrutiny related to blockchain adoption in lending, as well as potential challenges from traditional banks as Figure explores new markets like auto and small business loans. External macroeconomic factors—such as rising interest rates or economic downturns—could also affect consumer credit dynamics.
In a broader investment context, the Trefis High Quality Portfolio, which includes 30 stocks, has a history of outperforming benchmark indices like the S&P 500, Russell, and S&P midcap. This portfolio is noted for delivering superior returns with reduced risk, positioning it as a robust option for investors seeking more stable investment opportunities amidst market volatility. Figure Technology Solutions’ innovative approach to finance positions it as a potential candidate for investors looking for growth in the evolving landscape of financial services.
