On-Chain Stock Trading and Financial Market Disintermediation: How Figure's OPEN Network is Redefining Market Infrastructure and Unlocking Value for Investors

The financial markets are on the cusp of a seismic shift. For decades, trading infrastructure has been dominated by intermediaries-custodians, clearinghouses, and brokers-that add layers of cost, complexity, and opacity. But Figure Technologies' OPEN Network, launched in December 2025, is challenging this status quo by leveraging blockchain to create a decentralized, transparent, and efficient equity trading ecosystem. By enabling direct on-chain ownership and trading of public equities, Figure is not just digitizing finance-it's redefining it.

The Technological Framework: Provenance Blockchain and Direct On-Chain Ownership

At the heart of Figure's innovation is the Provenance Blockchain, a purpose-built ledger designed for financial assets. Unlike traditional tokenized stock offerings, which often represent digital wrappers around existing securities, OPEN equities are native blockchain assets that represent actual ownership of shares. This distinction is critical: it eliminates the need for intermediaries like the Depository Trust and Clearing Corporation (DTCC) and custodial brokers, reducing settlement times from days to near-instantaneous transactions.

The platform's Alternative Trading System (ATS) further enhances liquidity by enabling continuous trading via a limit order book. Crucially, shares on OPEN are two-way exchangeable with a company's Nasdaq-listed shares, ensuring seamless cross-market liquidity. This hybrid model bridges the gap between traditional and blockchain-native markets, making it easier for institutions and retail investors to participate without sacrificing familiarity.

Figure's Democratized Prime protocol adds another layer of disruption. By allowing shareholders to lend or borrow shares directly on the blockchain, it redirects the economics of stock lending-traditionally captured by large financial institutions-back to individual investors. This not only democratizes access to capital but also creates new income streams for retail participants.

Market Infrastructure Innovations: Efficiency, Transparency, and Scalability

The OPEN Network's impact extends beyond technology. It addresses systemic inefficiencies in equity trading, such as high transaction costs, opaque settlement processes, and limited access to capital. For example, Figure's recent AAA-rated securitization-backed by S&P and Moody's- demonstrates the platform's ability to attract institutional trust while offering innovative financing solutions.

Moreover, the network's adoption metrics are staggering. In December 2025, Figure reported a $869 million consumer loan marketplace volume, reflecting a 134% year-over-year growth. The $YLDS token, used within the ecosystem, saw its circulation surge by 198% since November 2025, reaching $328 million. Meanwhile, the Democratized Prime platform matched offers at a 442% monthly growth rate, with borrower demand rising 435%. These figures underscore the network's rapid scaling and its appeal to both institutional and retail participants.

Disintermediation in Action: Unlocking Value for Investors

The implications of Figure's approach are profound. By cutting out intermediaries, OPEN reduces transaction costs and settlement risks, while its transparent ledger ensures real-time visibility into ownership and trading activity. For institutional investors, this means lower capital costs and faster execution of trades. For retail investors, it opens access to previously exclusive opportunities, such as earning yields through share lending or participating in tokenized equity markets.

The broader market is taking notice. Tokenized equities surged by 2,800% in market capitalization in 2025, driven by favorable regulatory developments and growing institutional adoption of digital assets. Figure's partnerships with firms like BitGo and Jump Trading Group further validate its position as a leader in this space.

Strategic Investment Case: Why Now?

For investors, the case for Figure is clear. The OPEN Network is not a speculative experiment-it's a proven, scalable infrastructure with real-world adoption and regulatory backing. Its ability to tokenize equities, streamline capital flows, and democratize access aligns with macro trends in financial technology, including the rise of crypto treasuries and prediction markets. According to analysis, the network's potential to unlock value for both institutional and retail investors is undeniable.

Early adopters stand to benefit as the network matures. With Figure's consumer loan volume growing at a 2% monthly clip and its securitization platforms gaining AAA ratings, the ecosystem is attracting capital at an unprecedented rate. For those seeking to position themselves at the forefront of financial innovation, Figure represents a rare opportunity to invest in the infrastructure of the future.

Conclusion

Figure's OPEN Network is more than a technological advancement-it's a paradigm shift. By reimagining equity trading through blockchain, it's dismantling outdated intermediaries and creating a more efficient, transparent, and inclusive financial system. As adoption accelerates and regulatory frameworks evolve, the network's potential to unlock value for both institutional and retail investors is undeniable. For forward-thinking investors, the question isn't whether to invest-it's how soon.