Figure Technology's Blockchain Strategy Gains Momentum Amid Investor Skepticism
Figure Technology Solutions is rapidly distinguishing itself in the blockchain marketplace, according to Bernstein analysts. The company's first-quarter earnings report, released on May 11, exceeded Wall Street expectations in both revenue and EBITDA. Figure aims to transform real-world credit assets into blockchain-native instruments, enhancing their tradability, funding, and financing efficiency. According to Cointelegraph, as Figure develops its blockchain-native capital market ecosystem, analysts anticipate that the company will surprise investors with its unique approach compared to traditional fintech lending platforms. They view FIGR stock as a real-time indicator of blockchain loan volumes.
Bernstein analysts noted in a May 15 client note that FIGR's live blockchain data suggests a record-breaking second quarter is on the horizon. As the market becomes more adept at tracking live blockchain volume data, they believe FIGR's stock price will increasingly reflect blockchain loan volumes. Figure is positioning itself not just as a fast-growing home equity lender wrapped in crypto branding but as a comprehensive blockchain capital markets platform. During a May 12 earnings call, executive chairman and co-founder Mike Cagney discussed the challenges Figure faced when integrating its digital assets into decentralized finance (DeFi) for financing. He highlighted the complexities of asset-based lending in DeFi, particularly regarding collateral liquidity and loan participation.
Bernstein envisions Figure creating a complete marketplace where real-world assets, including loans and equities, can serve as active collateral for borrowing and lending liquidity. They suggest that FIGR could eventually earn a small fee from the entire blockchain economy within its ecosystem. Despite this potential, institutional investors remain skeptical of blockchain-for-finance narratives. CEO Michael Tannenbaum acknowledged this skepticism, emphasizing Figure's operational advantages over ideological ones. He described AI as "the brain" and blockchain as "the nervous system," arguing that blockchain-native data structures simplify underwriting, compliance, and loan verification.
Bernstein's previous research estimated a $4 trillion addressable market for the total annual volume of credit origination across various loan categories that could eventually move onchain as tokenized assets. This includes mortgages, auto loans, home equity lines of credit, and small-business loans, areas where Figure is expanding beyond its core business. Currently, tokenized credit is a small segment of the broader real-world asset market, valued at approximately $5.14 billion. Other projects, like Centrifuge, are also exploring onchain credit, expanding their platforms to include tokenized credit and US Treasury products. Figure has ventured into auto loans through the Hastra DeFi protocol, which integrates tokenized credit products into decentralized finance and broader blockchain markets. Launched by the Provenance Blockchain Foundation, the protocol recently expanded to the Morpho protocol on Ethereum, further enlarging its addressable DeFi market.
