Additionally, market makers will operate on-chain, and investors will be able to use shares as collateral and interchange them with Figure’s Nasdaq-listed stock through the company’s treasury.
Figure said the blockchain-based structure will enable 24/7 trading, direct ownership through digital wallets and more transparent stock lending without brokers or centralized clearing firms.
Holders will be able to lend or borrow shares through Democratized Prime, a decentralized finance protocol on Provenance, and can use the company’s SEC-registered $YLDS stablecoin to settle transactions. Shareholders will also be able to vote directly on the blockchain, according to Figure’s press release.
“What we’re doing isn’t just issuing a new share of stock. We’re actually creating an entirely new equity capital market,” Mike Cagney, executive chairman and co-founder of Figure, said during a Tuesday afternoon conference to discuss the proposed offering.
“We believe this is massively disruptive. When we started Figure back in 2018, our goal was to use blockchain to transform how capital markets work,” he added. “We’ve certainly done that in the credit space — over $20 billion of loan origination on blockchain at this point. … This is our opportunity to do that in the equity space, and we ultimately see this as extensible into every asset, whether it’s commodities or currencies or crypto.”
CEO Michael Tannenbaum said the structure extends the company’s work of applying blockchain to capital markets.
“This expansion integrates seamlessly into Figure’s ecosystem, connecting our origination platform, alternative trading system and yield stablecoin to create a comprehensive, self-reinforcing marketplace for real-world asset finance,” Tannenbaum said during the conference call.
The blockchain native equity will be non-dilutive and available only to existing shareholders, with Figure minting new blockchain stock, Cagney and Tannenbaum confirmed.
Under the proposed structure, existing investors will sell Class A shares to underwriters Goldman Sachs, Morgan Stanley and Cantor. Upon issuance of the Blockchain Stock, Figure will purchase an equal number of Class A shares from the underwriters and hold them in treasury for potential exchanges and conversions.
The number of shares to be offered and the price range have not been determined. Figure said the timing and terms will depend on market conditions, and there is no assurance the transaction will be completed.
Both Tannenbaum and Cagney expect this model to enhance liquidity and utility, potentially leading to a premium for blockchain securities over traditional National Market System (NMS) securities.
Figure in the news
Monday’s announcement builds on several new initiatives at the New York-based technology company.
After debuting on the Nasdaq in mid-September — an initial public offering that valued the company at $5.29 billion — Figure launched an AI-powered platform for debt-service-coverage ratio (DSCR) loans in mid-October that uses blockchain to speed up processing and reduce costs.
In Figure’s third-quarter 2025 earnings report, which was its first earnings release since going public, the company posted $2.5 billion in consumer loan marketplace volume, a 70% increase on an annual basis.
It also nearly tripled the volume for its first-lien home equity line of credit (HELOC) compared to a year earlier.