Additionally, market makers will operate on-chain and investors will be able to use the shares as collateral and exchange them with Nasdaq-listed Figure shares 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 companies.
Holders will be able to lend or borrow shares through Democratized Prime, a decentralized finance protocol on Provenance, and will be able to 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 is not just issuing new stock. We’re actually creating a whole new equity capital market,” Mike Cagney, executive chairman and co-founder of Figure, said at a conference Tuesday afternoon to discuss the proposed offering.
“We believe this is extremely disruptive. When we launched Figure in 2018, our goal was to use blockchain to transform the way capital markets work,” he added. “We’ve certainly done it in the credit space – over $20 billion in loans on blockchain at this point. … This is our opportunity to do it in the equities space, and we ultimately see that as potentially extending across all assets, whether it’s commodities, currencies or cryptocurrencies.”
CEO Michael Tannenbaum said the structure expands the company’s work of applying blockchain to capital markets.
“This expansion fits seamlessly into Figure’s ecosystem, connecting our origination platform, alternative trading system, and yield stablecoin to create a comprehensive, self-reinforcing marketplace for financing real-world assets,” Tannenbaum said on the conference call.
The blockchain-native shares will be non-dilutive and available only to existing shareholders, with Figure creating new blockchain shares, Cagney and Tannenbaum confirmed.
Under the proposed structure, existing investors will sell Class A shares to the underwriters. Goldman Sachs, Morgan Stanley And Cantor. Upon issuance of the Blockchain Shares, Figure will purchase an equal number of Class A shares from the underwriters and hold them in cash 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 can be no assurance the transaction will be completed.
Both Tannenbaum and Cagney expect this model to improve liquidity and utility, which could lead to a premium for blockchain securities over traditional National Market System (NMS) securities.
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Monday’s announcement builds on several new initiatives from the New York-based technology company.
After making its debut on the Nasdaq in mid-September – an IPO valuing the company at $5.29 billion – Figure launched an AI-powered platform for debt service coverage ratio (DSCR) loans in mid-October, which uses blockchain to speed processing and reduce costs.
In Figure’s third-quarter 2025 earnings report, which was its first earnings release since going public, the company reported $2.5 billion in volume in the consumer lending market, an increase of 70% on a year-over-year basis.
It also nearly tripled the size of its senior home equity line of credit (HELOC) from the previous year.
