Blockchain

Blockchain-based credit company Figure Technology Solutions Inc. filed publicly for an initial public offering, joining the rush of crypto-related firms entering the market.

The fintech firm announced it has taken the first formal step in going public via the filing of a draft registration statement on S-1 with the SEC.

The merger of the firm's lending arm and Figure Markets is a reaction to a thawing regulatory environment.

Figure Technologies is adding a Bitcoin option to its home equity line of credit, while Milo has done $65 million of crypto mortgages since 2021.

A joint venture with Sixth Street will give Figure more liquidity to scale Figure Connect, a blockchain-based private capital marketplace.

A fintech leader says his blockchain tech could help stakeholders buying and selling loans gain trust in one another.

Lenders including The Loan Store, Movement Mortgage, Bayview Asset Management and Saluda Grade are already using Figure Connect, the company said.

The proposed class action suit claims the fintech lender purposefully pushed customers applying for HELOC loans into higher rates, or misrepresented rates at the beginning.

Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.

Figure claims its lien and eNote registry is a "streamlined and markedly efficient alternative to manual assignments and conventional loan tracking databases."

The blockchain fintech has purportedly tapped Goldman Sachs Group Inc., JPMorgan Chase & Co. and Jefferies Financial Group Inc. to help with the initiative, per Bloomberg's reporting.

Mike Cagney, the fintech's CEO, said Tuesday the project came about in reaction to an industry need for a private capital market.

The fintech rolled out a Lending-as-a-Service (LaaS) platform, which gives lenders access to its system. The first mortgage shop to sign up is Guaranteed Rate.

Real-world use of the shared, immutable databases has become increasingly centered on piecemeal implementation in industry processes, which can be executed without waiting for broader technology reforms.

The ledger technology can make artificial intelligence systems more transparent, some industry stakeholders say.

The transaction is the second of its kind in the past six months and comes as the mortgage leaders take steps to develop document standardization that would ease electronic closings and trading of the home equity loans.

Last year, the company appeared to be on track to raise $300 million but has since reduced its target by two-thirds. 

 Lenders can utilize blockchain technology to originate fully digital, tokenized mortgage assets on the chain. How does it work, and how can mortgage companies benefit from integrating with this technology?

The single-family house, located in South Carolina, was sold to an investor for $176,200 last month.

The partnership is starting off small but ultimately aims to sell real estate through non-fungible tokens on a broader scale than others have in the past.