Blockchain-Native Equity: The Next Frontier in Capital Markets

The evolution of capital markets is poised for a seismic shift as blockchain technology redefines the boundaries of equity issuance and trading. At the forefront of this transformation is Figure Technologies, a fintech innovator seeking to tokenize its equity on the Solana blockchain as part of a dual-equity model. This initiative, detailed in its second IPO filing with the U.S. Securities and Exchange Commission (SEC), represents a bold experiment in merging traditional finance with decentralized infrastructure. For institutional investors, the strategic and regulatory implications of this move are profound, offering both opportunities and challenges in a rapidly evolving landscape.

Strategic Advantages of Blockchain-Native Equity

Figure's Solana-based IPO leverages the blockchain's inherent advantages: high throughput, low transaction costs, and near-instant settlement times. By bypassing traditional intermediaries, the company aims to reduce friction in equity issuance and trading while enhancing transparency. According to a report by , this approach enables investors to engage with decentralized finance (DeFi) protocols, such as borrowing or lending against tokenized shares-a feature unavailable in traditional broker-held securities.

The dual-equity model, with one class listed on Nasdaq and another on Solana, also opens new liquidity channels. For institutional investors, this duality could mean accessing a broader pool of capital while mitigating risks associated with regulatory uncertainty. Solana's role in this ecosystem is critical: its network has demonstrated robust lending markets with $3.6 billion in total value locked (TVL) as of December 2025, a 33% increase from the prior year. This growth underscores the platform's scalability and appeal for regulated tokenized assets.

Regulatory Compliance: Navigating a Fragmented Framework

The legal mechanisms underpinning Figure's initiative are equally noteworthy. Tokenized securities on Solana, such as those developed by Galaxy in collaboration with Superstate, are structured to mirror traditional shares in legal and economic rights while adhering to U.S. securities laws. These include registration with the SEC and compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements enforced by FinCEN according to a legal analysis.

A key enabler of compliance is the use of an SEC-registered transfer agent to manage tokenized share transfers between allowlisted entities as detailed in Galaxy's research. This aligns with broader efforts to modernize capital markets, such as Nasdaq's proposed rule changes to tokenize equity, which emphasize maintaining investor protections like access to the National Best Bid and Offer (NBBO) and enforcement of best execution according to a regulatory update. For institutional investors, these frameworks provide a degree of regulatory clarity, though the fragmented nature of tokenized asset laws remains a hurdle.

Financial Performance and Market Validation

Figure's strategic pivot is supported by strong financial performance. In Q3 2025, the company reported a 70% year-over-year increase in consumer loan marketplace volume, reaching $2.5 billion, alongside a 75% rise in adjusted EBITDA to $86 million. This growth validates the scalability of blockchain-based models and signals institutional confidence in the sector.

Solana's infrastructure further reinforces this momentum. Its high transaction throughput and fast finality make it an ideal platform for regulated tokenized assets, attracting institutional capital deployment. For investors, this synergy between Figure's innovation and Solana's technical capabilities presents a compelling case for long-term value creation.

Implications for Institutional Investors

The strategic and regulatory implications of Figure's IPO extend beyond its own operations. As a test case for blockchain-native equity, the initiative could set a precedent for future offerings, particularly in markets where traditional intermediaries are less dominant. For institutional investors, the dual-equity model offers a hybrid approach: the familiarity of Nasdaq listings paired with the efficiency and innovation of blockchain-native assets.

However, risks remain. Regulatory frameworks for tokenized securities are still evolving, and the SEC's response to Figure's filing will be critical. A favorable outcome could accelerate adoption, while delays or rejections might highlight the need for further alignment between blockchain protocols and existing laws.

Conclusion

Figure Technologies' Solana-based IPO represents a pivotal moment in the convergence of traditional finance and blockchain technology. By addressing both strategic advantages-such as reduced costs and enhanced liquidity-and regulatory compliance through established frameworks, the company is laying the groundwork for a new era of capital markets. For institutional investors, the dual-equity model offers a unique opportunity to participate in this evolution while navigating the complexities of a fragmented regulatory landscape. As the SEC and other regulators continue to evaluate these innovations, the success of Figure's initiative could redefine the future of equity issuance, making blockchain-native assets a cornerstone of institutional portfolios.