Today San Francisco based Figure Technologies announced it has successfully issued an asset backed security (ABS) based on $149 million of loans that were originated, service, financed and sold via the Provenance blockchain. The underlying loans were originated by Figure, with Jefferies Group and Nomura Securities as underwriters. Tilden Park Capital was a loan contributor and subordinate note buyer.
Figure claims the collective benefit over the entire lifecycle of the loans is 100 basis points or 1%. Perhaps cheekily, it extrapolated that across the entire $3 trillion annual securitization market to give a potential savings of $30 billion.
It’s not the first to use ABS with blockchain. Multiple blockchain-based ABS have been issued in China. State-owned Bank of Communications was involved in a RMB9.3 billion ($1.3 billion) residential mortgage-backed security transaction. Both Fitch and Moody’s have explored the potential for asset backed security sector.
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