Expanding access to credit remains one of the largest challenges in consumer financing. Inherited systems continue to slow down approvals, raise costs and limit access to capital. Figure Technology Solutions, in its public file to offer around 26.3 million actions, is positioned as a company which can, among other things, modernize the consumer loan process by integrating artificial intelligence (AI) and blockchain in the origin of the loan, subscription and trade in the secondary market.
Founded in 2018, the figure started in home loans, but has since built what it says is a vertically integrated model that links the origin, market distribution and the execution of capital markets. Its recently deposited S-1 explains how the company seeks to develop home loans in a larger range of credit productsWhile also creating markets for digital assets and stablecoins. Management argues that the combination of automation led by AI and blockchain’s transparency could reduce the ineffectiveness of the loan markets and offer faster and more accessible credit.
Fragmented landscape
“The infrastructure supporting the capital markets today is fragmented and operates on inherited systems which Use obsolete processes for loan approvals and transactions processing. This creates costs and prices of costs in the consumer credit market service and limits the development of alternative markets “, according to the file.” In addition, the manual elements underlying the files of the property and the transfer of financial and real assets limit liquidity, maintain high costs and are taken in error. »»
The company’s platform is built on the blockchain of the provenance, which it describes as a “recording of truth” for assets. Each loan from its system is recorded on the blockchain, offering an unchanging property and performance recording. The figure combines this with automated assessment models, a subscription fueled by AI and intelligent contracts that govern loan sales and transfers. This approach allowed the company to shorten approval times for domestic capital lines (helocs) to a median of 10 days, against an average of the 42 -day industry. Loan requests can be completed in five minutes, with funding available in as little as five days.
The figure estimates its market that can be appropriate on loans and capital markets at around $ 185 billion in annual income potential, depending on the origins of consumer credit and market trade. In addition to loans, management targets tokenization and stablecoins as growth opportunities. The external forecasts mentioned in the estimate of the deposit The asset tokenization market could reach 16 billions of dollars by 2030, while the Stablescoin market could approach 5 billions of dollars during the same period.
The file maintains that the company has reached profitability and has scaled it in a capital economy. Income models are built on original costs, service, earn on loan sales and the use of technology. Partners’ brand loans, where banks and mortgage creators use the figure platform under their own brand, represents 77% of the total origins. The figure had 168 active partners in mid-2010.
The company has also built a regulatory infrastructure to support its ambitions. It has more than 180 loan and service licenses, 48 silver issuer licenses and the registration of the SEC as a broker with the power to operate an alternative trade system. Internationally, he has crypto licenses in the Cayman Islands and Ireland. The management argues that this license framework differentiates it from competitors and will support the scale of new products.
Of the file:
- Home loan growth: For the 12 months ending on June 30, 2025, the figure facilitated around $ 6 billion in Heloc loans, up 29% compared to the previous year. The company’s Heloc activity has increased at an annual growth rate made up of 70% since mid-201.
- Connect Marketplace figure: Launched in June 2024, the market treated $ 1.3 billion in loans volume during its first year. The platform directly connects initiators and investors, with 27 participants embedded In mid-2025.
- Income and profitability: For the six months ending on June 30, 2025, net revenues were $ 191 million, compared to $ 156 million during the annual period. Net profit came to $ 29 million, against a loss of $ 13 million A year before. The adjusted Baiia, an approximate measurement of cash flows, reached $ 83 million, more than double the previous year.
- Diversification products: Although helocs make up 99% of current Originations, the figure is to pilot loans of debt service, digital service supported Loans and plans for move in personal loans, automobiles and students.
- Processing and expansion of Introduction on the stock market: The company plans to use the IPO product to invest in the development of new products, expand its loans market and the scale of initiatives such as Democratized Prime, a funding market, an exchange of figures, a regulated trading platform and YLD, a stable of yield registered with the SEC.
Challenges and risks
The deposit recognizes the risks that could slow down adoption. The dependence on AI for credit decisions increases considerations of compliance with fair loans under federal and state law. Although automation reduces errors, regulators closely monitor how the algorithm subscription has an impact on borrowers between credit levels.
The adoption of the blockchain also faces opposite winds. Despite a strong growth in tokenization, less than 1% of active active world are currently registered On blockchains, according to data from the industry cited in the file. The expansion of the figure in products such as Democratized Prime and Ylds Stablecoin has not yet produced significant income.
And although The figure of $ 2 billions mentioned above extends over a wide range of asset classes for consumption, including helicopters, mortgage refinancingPersonal loans, credit card and automotive, home loans remain the main company of the companyand request is cyclical, linked to housing markets and interest rates. A slowdown in mortgage activity or the increase in consumer credit costs could have an impact on creation volumes and income growth.
