Yesterday Bloomberg reported that blockchain startup Figure is working with Goldman Sachs, JP Morgan and Jefferies on a potential IPO of its lending arm in 2024. The same three institutions worked with Figure on its April asset backed security (ABS) issuance. Bloomberg reports it’s looking for a valuation of $2 – $3 billion. Separately Figure wants to raise $50 million for its digital assets arm.
Figure founded the public Provenance blockchain and has a wide range of institutional solutions. Its own blockchain based mortgage registry underpins the ABS issuance. A Figure subsidiary has an ATS license for trading funds, equity and other securities. Additionally, it’s working on tokenization solutions with asset manager Apollo Global in association with JP Morgan. Plus, it’s a technology provider for the USDF Consortium for tokenized deposits.
The lending arm referred to by Bloomberg is Figure’s retail real estate financing platform. Its biggest offering is Home Equity Lines of Credit (HELOC) where it has extended $8 billion in loans to date. Reading between the lines, Figure’s prime goal isn’t to run a retail lending business. It wants to be the infrastructure provider. However, first it needed to demonstrate the savings.
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