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I’ve spent the last fifteen years moving lending from paper to digital to blockchain. SoFi proved borrowers didn’t need banks. Figure proved capital markets don’t need the middleman: roughly $2B a month (and growing) of real world assets now originate, finance, settle - and soon securitize - on a public blockchain. Lower transactional costs, better capital markets and better financing vs TradFi. And not mirrored on chain. Born there. Every other asset class will follow the same path: equities, funds, eventually anything with a cash flow. The horse has left the barn. The next decade of capital markets gets built by the people who already operate this way.
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22 of the 62 companies slated for the OKX-ICE tokenized stock venue have now opted out. Friday's notice added Wells Fargo, Cisco, Arm, Marvell, Moderna and Intuit - up from nine objectors on October 15.
That being said, there is value in having equity on blockchain. Accessibility, better margin, stock loan. But wrapping securities to put on chain isn't the answer. Blockchain native issuance is the way.
That being said, there is value in having equity on blockchain. Accessibility, better margin, stock loan. But wrapping securities to put on chain isn't the answer. Blockchain native issuance is the way.
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Bank Negara Malaysia switched on SSDS+ yesterday - a distributed ledger version of its government securities depository. Tokenized bonds and sukuk settle against RENTAS+ in central bank money. Native on-chain government bonds, not wrapped IOUs.
Would love to see the @USTreasury do something similar. I think it would lower issuance and registration cost and dramatically increase demand for US treasuries, something that's becoming more of an issue these days...
In the meantime, @Figure continues to push native on-chain issuance on @provenancefdn and other leading L1s and L2s, like Solana, Stellar and Base.
Would love to see the @USTreasury do something similar. I think it would lower issuance and registration cost and dramatically increase demand for US treasuries, something that's becoming more of an issue these days...
In the meantime, @Figure continues to push native on-chain issuance on @provenancefdn and other leading L1s and L2s, like Solana, Stellar and Base.
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Interesting to see the fixed income space consolidate while on-chain equities is still the wild west.
Tokenized equities went from about $654M to $3.8B this year, per DWF Labs - 483% growth. The leader's share went from 56% to 26% over the same stretch. Growth that fast with share rotating that fast means structure hasn't settled. Still roughly 0.0025% of global stock markets - we haven't really started yet.
Tokenized equities went from about $654M to $3.8B this year, per DWF Labs - 483% growth. The leader's share went from 56% to 26% over the same stretch. Growth that fast with share rotating that fast means structure hasn't settled. Still roughly 0.0025% of global stock markets - we haven't really started yet.
ICE bought MarketAxess and now TradeWeb buying Trumid. Automation in the credit markets is a major trend and tokenization is the next phase of automation as the SaaS era improved workflows, but the agentic x blockchain era will meaningfully lower costs, settlement times and risk
wsj.com/business/deals…
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This is a generally misunderstood aspect of @Figure's model.
For context, it takes over $10K to originate a first lien mortgage with Fannie or Freddie (the GSEs). The problem is for small loan balances (<$250K) the lender can't make money - there is no 4+ point takeout for that loan. So they just don't make those loans, cutting out financing options for the people that need them.
It costs less than $1K to originate a Figure loan, and over time, our first lien HELOC rates have gotten close enough to GSE rates that not only are we competitive, lenders can make real money in a category they had given up on.
We'd welcome working with Director @pulte to bring more affordable financing to this lower income space, as is the GSE mandate. Otherwise we're creating a very lopsided housing market and further driving the wealth divide.
For context, it takes over $10K to originate a first lien mortgage with Fannie or Freddie (the GSEs). The problem is for small loan balances (<$250K) the lender can't make money - there is no 4+ point takeout for that loan. So they just don't make those loans, cutting out financing options for the people that need them.
It costs less than $1K to originate a Figure loan, and over time, our first lien HELOC rates have gotten close enough to GSE rates that not only are we competitive, lenders can make real money in a category they had given up on.
We'd welcome working with Director @pulte to bring more affordable financing to this lower income space, as is the GSE mandate. Otherwise we're creating a very lopsided housing market and further driving the wealth divide.
Luxury growing faster than starter and mid tier housing markets puts increased pressure on the resulting mortgages in this space. Smaller balance loans (the ones that back a lot of the starter and mid tier housing market) need faster, cheaper rails the most. That's among the reasons why Figure is taking share and seeing record growth.
wsj.com/economy/housin…
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As of last week, 10 companies had opted out of having their stock listed as a token on the OKXICE TSV.
On a first order, companies should get the directional benefit of a marginal buyer, as there is an underlying DTC share backing the token. But second order is where things break down.
It's unclear there is a path to a.) leverage and b.) stock loan ability in this ecosystem. The hurts investors.
Without this path, I don't see why this offering is any better/different than the offshore tokens today. This isn't a product for US investors (they are better off on one of the national markets per a and b above) and foreign investors can access price action through other mediums. It will be interesting to see if the OKX distribution can be a difference-maker here.
On a first order, companies should get the directional benefit of a marginal buyer, as there is an underlying DTC share backing the token. But second order is where things break down.
It's unclear there is a path to a.) leverage and b.) stock loan ability in this ecosystem. The hurts investors.
Without this path, I don't see why this offering is any better/different than the offshore tokens today. This isn't a product for US investors (they are better off on one of the national markets per a and b above) and foreign investors can access price action through other mediums. It will be interesting to see if the OKX distribution can be a difference-maker here.
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I love seeing @Figure loans power the broader DeFi ecosystem. @NUVAFinance is a first mover in a differentiated model - buying loans from Figure's marketplace. And using Figure's $YLDS as the dollar liquidity eliminates the cash drag on the vault.
I'm hoping NUVA becomes a major buyer on Figure Connect, competing with the big institutions. And Nuva pays for loans in $YLDS, which we like.
I'm hoping NUVA becomes a major buyer on Figure Connect, competing with the big institutions. And Nuva pays for loans in $YLDS, which we like.
1/ Introducing HOME, NUVA’s flagship vault.
The first ever permissionless DeFi vault that directly holds a portfolio of US mortgage loans.
Monthly fixed policy rate targeting 7.00%, supported by a first-loss buffer.
Loans originated by @Figure and partners.
Live now.
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Retweeting this for clarification.
DTCC plans to switch on its tokenization service this month. Worth being precise about what it is: shares stay in DTC custody and a token mirrors them on DTC's Besu permissioned ledger. Same plumbing, new wrapper. Native issuance, where the chain is the record, removes the plumbing. Both will exist. Only one actually changes things.
DTCC plans to switch on its tokenization service this month. Worth being precise about what it is: shares stay in DTC custody and a token mirrors them on DTC's Besu permissioned ledger. Same plumbing, new wrapper. Native issuance, where the chain is the record, removes the plumbing. Both will exist. Only one actually changes things.
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My best guess - from public blockchain data - on public blockchain equity volume for the last week. Read the footnotes for more info.
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User empathy is critical - every CEO with a customer service arm should do this. Great to see.
Every day, customer feedback rolls into a dedicated Slack channel in real-time. Praise is great, but blunt feedback is even better - it keeps us continuously adapting to serve our customers.
Spent the week in Reno with our CS team reacting to real comments on camera, eating (!), and seeing firsthand how they're using AI to level up support.
That feedback loop is how we keep raising the bar. 📈
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Thank you @GSaulsbery and @bankingdive for covering the @HelloNavra launch! I didn't have two full time jobs on my bingo card after the Figure IPO, but I'm now working across both and believe the Navra team is going to bring the real dollars into DeFi for the benefit of Figure and others.
bankingdive.com/news/sofi-figu…
bankingdive.com/news/sofi-figu…
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In one week: ARK tokenized its venture fund, Binance's wrapped stocks cross $1B, and the IMF sizes tokenized equities at $2.3B against $152T of global stock markets. The category is at 0.002% penetration and already forcing the structure question: wrapper or native? Wrappers proved the early demand. I believe natively registered shares - like what @Figure is doing - are what institutions will actually hold.
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We've done over $2.1 billion in securitization and whole loan sales since mid-September when the Fed raised rates. The Connect marketplace is doing what it's supposed to do - delivering liquidity and best execution to Figure partners across capital market cycles.
Single channel originators end up as price-takers in volatile markets. We built Figure Connect so our partners wouldn’t be.
Right now, institutional whole-loan bids are offering better pricing than securitization markets. Having the infrastructure to pivot seamlessly to the highest bidder is how we consistently deliver best execution for our ecosystem.
Depth, diversification, and durable liquidity across market cycles is the Figure model.
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DSCR is a great bookend to HELOC. Part of Figure's barbell strategy to work in any rate environment, low or - as it is now - high.
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To build on this, isn't this why they put CZ in prison? Is Brian Moynihan going to face the same fate?
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We need a different talking head. Maybe Figure will let @HelloNavra buy the rights to Blockie?
None the less, I appreciate the opportunity to talk to the mission of Navra. Hopefully this illustrates how much value Navra will bring to Figure and the broader DeFi ecosystem.
None the less, I appreciate the opportunity to talk to the mission of Navra. Hopefully this illustrates how much value Navra will bring to Figure and the broader DeFi ecosystem.
Hear from our Co-Founder, @mcagney, about what to expect from the Navra app.
A familiar, easy-to-use experience, supported by an AI agent that helps you discover yield opportunities, automate tasks within parameters you control, and even generate end-of-month accounting reports.
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The mortgage industry is thinking about AI the wrong way. It's not about cost, it's about driving conversion. And coupled with blockchain, it's a 1 + 1 = 3 event.
Leaving the @MBAMortgage Conference in Chicago - great meetings with prospects and customers. With AI, so many talk about POCs or lowering costs ... we trained our AI loan officer assistant on CONVERSIONS (not volume of interactions), and that optimization is why our approach is differentiated, especially on a heavily considered purchase. Add liquidity and standardization in a tough rate environment ... we're offering real value to partners.
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The IMF just took its first serious look at tokenized stocks. Headline: 1.5x the volatility of the underlying. Read past the headline. Over half of all trading happened outside US market hours, and 80% of trades were smaller than one share. That is pent up demand for access, not a defect in the rails. The volatility is a thin liquidity problem, and liquidity follows regulatory clarity. It is the best argument yet for a sustainable compliant onchain equity solution.
@Figure has one such solution with OPEN, and others are coming. Irrespective of who wins here, equities are coming onchain.
@Figure has one such solution with OPEN, and others are coming. Irrespective of who wins here, equities are coming onchain.
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The collateral unlock is part of the story. Stock borrow/loan is the other. It will happen.
Adena Friedman is right that tokenization makes collateral fluid. This is not a hypothetical, on Figure's Democratized Prime, matched offers hit $588M at the end of September, up 50% from Q2, with $800M+
of lender supply behind it. Atomic settlement, perfected liens, faster rails let collateral actually move.
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