Figure aggregates on-chain mortgages, tokenization, and trading platforms. Coindesk points out that the company has submitted a confidential IPO application to the SEC, and the market is focused on the integration of blockchain into the vast mortgage market. (Background: U.S. mortgages accept Bitcoin as collateral! CZ and Michael Saylor both shout: BTC redefines the 'American Dream') (Context: Bitcoin volatility is less than U.S. stocks: The Iran-Israel war highlights the maturity of crypto assets) According to Coindesk's report today (5), the U.S. Securities and Exchange Commission (SEC) has received a confidential document: Figure Technology Solutions, an on-chain mortgage service provider founded by SoFi co-founder Mike Cagney, has initiated the IPO process, aiming to raise $500 million to $1 billion on NASDAQ, indicating another new signal of blockchain technology moving from the fringes to the large physical asset market. The on-chain mortgage model compresses a five-week process into five days. Figure uses its self-developed Provenance blockchain to process Home Equity Line of Credit (HELOC) applications. Traditional HELOCs can take several weeks from assessment to disbursement; Figure claims it can complete approvals in about 5 minutes and disburse funds within 5 days. The efficiency advantage is reflected in financial data: the company’s adjusted EBITDA profit margin for 2024 exceeds 30%. As of now, the platform’s cumulative loan amount has surpassed $16 billion and has partnered with institutions such as Goldman Sachs and JPMorgan. Tokenization of physical assets, the first AAA blockchain securitization. In addition to lending, Figure is also deeply involved in the tokenization of physical assets (RWA). The company has completed a $355 million transaction on the Provenance blockchain backed by HELOCs and has received an S&P AAA rating, providing on-chain assets with the same credit tier as traditional bonds. The timing of the IPO and regulatory environment present both growth and uncertainty. Figure chose to submit its application under the Trump administration's pro-crypto stance, reflecting the company’s judgment on regulatory trends. Recently, USDC issuer Circle, custodian BitGo, and asset management company Grayscale have also applied for or completed listings, indicating that blockchain companies are accelerating their entry into the public market. Figure's IPO is not only for its own financing but is also seen as a litmus test for the digital transformation of the mortgage market. If the listing is successful, blockchain is expected to gain broader adoption in the high-value, low-error-rate real estate finance sector. However, Figure still faces challenges, including how to maintain compliance amid different state regulations and federal oversight, how to sustain lending demand in a high-interest-rate environment, and how to protect user data and on-chain asset security...

#SEC #RWA