The Disruption of Traditional Stock Lending by Blockchain-Based Platforms: Why Figure's OPEN Network Represents a High-Conviction Investment in the Future of Equity Markets

The evolution of financial markets in 2025 has been marked by a seismic shift toward blockchain-based infrastructure, driven by institutional demand for efficiency, transparency, and regulatory clarity. At the forefront of this transformation is Figure Technologies' OPEN Network, a blockchain-native platform redefining stock lending and real-world asset (RWA) tokenization. With a 75% market share in RWA tokenization and a strategic pivot to on-chain equity settlements, Figure's OPEN Network is not merely adapting to market trends-it is accelerating the obsolescence of legacy systems. For investors, this represents a rare confluence of technological innovation, macroeconomic tailwinds, and institutional validation.

The Inefficiencies of Traditional Stock Lending

Traditional stock lending mechanisms, long dominated by intermediaries like brokers and custodians, are plagued by friction. These include opaque collateral management, delayed settlements, and high operational costs. According to a report by SSGA, securities lending in 2025 still relied heavily on manual processes and fragmented infrastructure, limiting liquidity and exposing participants to counterparty risk. Meanwhile, the rise of digital asset treasuries and tokenized instruments has created a demand for faster, more transparent alternatives.

Figure's Blockchain-Driven Disruption

Figure's OPEN Network addresses these inefficiencies by leveraging blockchain to enable direct, peer-to-peer stock lending. Launched in January 2026, the platform allows companies to issue real equity on Figure's Provenance blockchain, bypassing traditional intermediaries. This innovation streamlines settlements, reduces counterparty risk, and lowers transaction costs.

For instance, onchain transaction fees have declined by approximately 90% from 2021 to 2025, enabling protocols like Figure to offer cost-effective solutions. By August 2025, lending applications accounted for over 80% of the onchain market, signaling a structural shift toward blockchain-based liquidity.

The platform's efficiency gains are further amplified by its integration with stablecoins and tokenized treasuries. For example, institutional investors now treat tokenized assets as strategic allocations, with spot Bitcoin ETFs alone attracting $115 billion in assets under management. This trend underscores a broader institutional shift toward digital infrastructure, where Figure's OPEN Network serves as a critical enabler.

Institutional Adoption and Regulatory Tailwinds

Figure's dominance in RWA tokenization is not accidental but a product of strategic alignment with regulatory developments. The EU's MiCA framework and the U.S. GENIUS Act have provided a structured environment for institutional participation, legitimizing crypto assets as viable portfolio diversifiers. By late 2025, Figure had announced an RWA Consortium on Solana, partnering with leading crypto entities to advance on-chain finance. These partnerships, coupled with a 70% year-over-year increase in consumer loan volumes, highlight the platform's scalability and institutional trust.

Moreover, Figure's blockchain pivot has attracted attention from digital asset treasury firms, which are increasingly adopting its infrastructure for risk-controlled income strategies. While direct partnerships with traditional stock lending firms remain unconfirmed, the platform's ability to bypass intermediaries-while complying with evolving regulations-positions it as a disruptive force in a $36.5 billion crypto lending market.

A High-Conviction Investment Thesis

For investors, Figure's OPEN Network represents a high-conviction opportunity due to three pillars: 1. Market Leadership: With 75% of the RWA tokenization market, Figure is capitalizing on a sector projected to grow exponentially as institutional demand for tokenized assets intensifies. 2. Efficiency Gains: The platform's blockchain-native architecture reduces costs and accelerates settlements, directly challenging traditional intermediaries. 3. Regulatory Alignment: Proactive engagement with frameworks like MiCA and the GENIUS Act ensures Figure remains ahead of compliance curves, mitigating regulatory risks.

As Wall Street analysts have noted, Figure's blockchain pivot has repositioned it as a top investment opportunity for 2026. This is not merely a bet on blockchain but on the broader reimagining of equity markets, where transparency, speed, and institutional-grade security converge.

Conclusion

The disruption of traditional stock lending by blockchain-based platforms is no longer speculative-it is operational. Figure's OPEN Network exemplifies this shift, combining technological innovation with institutional-grade infrastructure to redefine liquidity, efficiency, and trust. For investors seeking exposure to the future of equity markets, Figure's strategic dominance in RWA tokenization and its blockchain-driven lending solutions present a compelling case for long-term value creation.