Blockchain lender Figure Technologies has successfully launched its initial public offering (IPO), raising a substantial $787.5 million. The New York-based firm is set to commence trading on the Nasdaq under the ticker symbol “FIGR.” This IPO reflects a growing trend of cryptocurrency firms making their way onto Wall Street in 2023.
Figure sold 31.5 million shares priced at $25 each, significantly above its initial target range of $20 to $22 per share for 26 million shares. With a total of 211 million shares outstanding, the IPO places Figure’s valuation at approximately $5.29 billion. The lead underwriters for this public offering included renowned financial institutions Goldman Sachs and BofA Securities.
Interestingly, Figure clarified that it would not benefit financially from shares sold by existing investors, implying that the firm itself garnered $587 million from the IPO. This uptick in market activity comes on the heels of other notable crypto firm debuts this year, including the launch of crypto exchange Bullish and stablecoin issuer Circle. Moreover, crypto exchange Gemini, co-founded by the Winklevoss twins, is also poised for its IPO.
Figure Technologies positions itself as the largest non-bank provider of home equity financing, boasting $16 billion in home loan originations since its founding in 2018. The firm utilizes a blockchain-based platform to offer home equity lines of credit (HELOCs), emphasizing quick approval times. Traditionally, obtaining a HELOC can be a lengthy process; however, Figure claims its blockchain technology allows approvals in mere minutes and funding within days.
In addition to HELOCs, Figure is actively engaged in tokenizing private credit through its Provenance blockchain. Recent data from RWA.xyz indicates that Figure has $11.7 billion in outstanding loans represented on-chain. By comparison, its main competitors, Tradable and Maple Finance, have outstanding loans totaling $2.1 billion and $1.2 billion, respectively.
Figure’s tokenized HELOC loans hold a market capitalization of $12.5 billion, making them one of the largest cryptocurrency assets, even surpassing Avalanche’s native token in market cap. This development underscores the growing intersection between traditional finance and blockchain technology, paving the way for further innovations in the lending landscape.
