Blockchain-Native Equity Trading: Figure's OPEN Platform and the Future of Capital Markets

The equity trading landscape is on the brink of a seismic shift, driven by blockchain technology's ability to redefine ownership, liquidity, and efficiency. At the forefront of this revolution is Figure's On-Chain Public Equity Network (OPEN), a platform that leverages blockchain to enable companies to issue and trade equities natively on-chain, bypassing traditional intermediaries like custodians and brokers. For investors and issuers alike, OPEN represents a disruptive force that could democratize access, reduce costs, and unlock new financial instruments-reshaping capital markets for the digital age.

The Core Innovation: Disintermediation and On-Chain Ownership

OPEN's most groundbreaking feature is its ability to tokenize real equity directly on the blockchain, eliminating the need for DTCC-based tokenization methods. By operating on the Provenance Blockchain, the platform allows companies to issue shares that represent true ownership, enabling investors to lend, pledge, or transfer their shares directly on-chain. This disintermediates prime brokers and custodians, slashing operational costs and reducing settlement times from days to seconds. For example, Figure itself plans to be the first issuer to utilize OPEN, having filed a public registration statement for a non-dilutive, secondary equity offering-a move that signals confidence in the platform's scalability.

Traditional equity markets rely on a complex web of intermediaries to facilitate transactions, but OPEN's Alternative Trading System (ATS) operates via a limit order book, enabling continuous trading and real-time liquidity. This is a stark departure from legacy systems, where cross-border settlements and fragmented infrastructure often lead to inefficiencies. By integrating DeFi protocols like Democratized Prime, OPEN allows shareholders to borrow against or lend their stock, creating a dynamic where liquidity is programmable and accessible to a broader audience.

Liquidity, Transparency, and Cross-Market Synergy

One of the most compelling aspects of OPEN is its two-way exchangeability with Nasdaq-listed shares. This ensures that liquidity is preserved across both blockchain-native and traditional markets, addressing a critical concern for institutional and retail investors who fear fragmentation. For issuers, this dual-listing capability provides a bridge to blockchain-native investors while maintaining access to established marketplaces. The result is a hybrid ecosystem where innovation and tradition coexist, fostering broader adoption.

Transparency is another cornerstone of OPEN's value proposition. Blockchain's immutable ledger ensures that every transaction is auditable, reducing the risk of fraud and enhancing trust. This is particularly appealing to younger investors, who prioritize real-time data and social trading features. For instance, platforms like Robinhood have already demonstrated the demand for user-centric, mobile-first trading experiences. OPEN builds on this by introducing programmable financial instruments-such as automated lending protocols-that align with the preferences of a digitally native generation.

The Bigger Picture: AI, Automation, and Market Resilience

OPEN's impact is further amplified by broader trends in AI-driven trading and automation. By 2025, AI strategies accounted for 89% of global trading volume, enabling faster settlements, tighter spreads, and real-time rebalancing of positions. OPEN's blockchain-native infrastructure is uniquely positioned to integrate with these AI systems, offering near-instantaneous data feeds and programmable smart contracts that execute trades based on algorithmic signals. This synergy between blockchain and AI is not just theoretical-it's already reshaping the S&P 500, which achieved 15%+ returns for the third consecutive year in 2025.

For issuers, the platform's efficiency translates into cost savings and faster access to capital. In 2025, the average IPO size surged by 70%, driven by companies delaying public offerings to scale privately. OPEN's streamlined settlement process and reduced intermediary costs make it an attractive option for firms seeking to capitalize on this trend. Moreover, the platform's support from industry heavyweights like BitGo and Jump Trading underscores its potential to become a standard for modern equity issuance.

Challenges and the Road Ahead

While OPEN's potential is undeniable, adoption hinges on regulatory clarity and market education. Blockchain-native equity trading remains a novel concept, and regulators must adapt frameworks to accommodate on-chain ownership without stifling innovation. However, the platform's two-way exchangeability with Nasdaq and its focus on real equity-rather than synthetic tokens-position it as a pragmatic solution that aligns with existing legal structures.

Looking ahead, the 2026 IPO market is poised for a renaissance, with AI infrastructure, software, and specialty risk sectors leading the charge. OPEN's ability to tokenize these high-growth assets on-chain could accelerate their adoption, particularly as private equity firms seek exit strategies in a post-pandemic landscape. With $400 billion in dry powder and a $40 trillion investment-grade segment up for grabs, the platform's role in reshaping private credit and capital allocation is equally significant.

Conclusion: A Paradigm Shift for Capital Markets

Figure's OPEN Platform is more than a technological innovation-it's a paradigm shift that addresses the inefficiencies of traditional equity trading while embracing the opportunities of blockchain and AI. For investors, it offers unprecedented liquidity, transparency, and access to DeFi tools. For issuers, it provides a cost-effective, scalable solution to raise capital in a rapidly evolving market. As the U.S. equity market continues to trend toward AI-driven automation and real-time settlements, OPEN's blockchain-native model is uniquely positioned to lead the charge.

In a world where financial infrastructure is increasingly digitized, the question is no longer if blockchain will disrupt equity markets-but how quickly. OPEN's launch in 2025 and its subsequent adoption by both blockchain-native and traditional firms suggest that the future of capital markets is already here.