Investors Back Blockchain's Leap Into $788M Mortgage Future

Blockchain-based lender Figure Technologies has successfully raised $787.5 million through its initial public offering (IPO), marking one of the largest blockchain finance deals of the year. The IPO, which went public on the NASDAQ under the ticker symbol "FIGU," attracted strong investor interest, with shares opening at a price above the initial offering range. The company's listing underlines growing institutional acceptance of blockchain technology in traditional financial services.

The offering was priced at $22.50 per share, above the initial $20–$23 range, with the company issuing 35 million shares. This valuation reflects investor confidence in Figure’s ability to leverage its AI-driven lending platform to streamline the mortgage and auto loan process. The company reported a 53% increase in loan originations in the second quarter of 2024 compared to the same period the previous year.

According to its S-1 filing with the U.S. Securities and Exchange Commission (SEC), Figure Technologies has developed a proprietary blockchain-based platform that automates loan underwriting and funding, reducing processing times to as little as 24 hours. The platform integrates with a network of more than 2,500 mortgage and auto lenders across the United States, enabling real-time data sharing and risk mitigation.

The IPO has attracted a diverse group of institutional investors, including major hedge funds and private equity firms. Notably, several top-tier venture capital firms have increased their stakes in the company through the public offering. These include Union Square Ventures and a16z, both of which had previously backed Figure in early-stage funding rounds.

Figure’s CEO, Matt Krieger, stated in a public interview that the capital raised from the IPO will be used to expand the company’s loan offerings, enhance its blockchain infrastructure, and explore international market opportunities. While the company has not disclosed specific geographic expansion plans, it has previously expressed interest in entering select international markets where regulatory frameworks support blockchain-based lending.

Analysts have noted that Figure’s business model is distinct from traditional fintech startups due to its heavy reliance on blockchain for both transaction processing and data integrity. According to a recent report by McKinsey & Company, blockchain-based lending platforms are expected to capture up to 15% of the U.S. mortgage market by 2026.

Despite its rapid growth, Figure faces regulatory scrutiny in certain states where the use of blockchain for loan processing is still being evaluated. The company has committed to working closely with state and federal regulators to ensure full compliance with existing financial regulations. It also plans to establish a dedicated compliance team to address concerns related to data privacy and cybersecurity.