The Emergence of On-Chain Equity Markets and Figure Technology's OPEN Platform

The financial markets are undergoing a seismic shift, driven by the convergence of blockchain technology and capital market innovation. At the forefront of this transformation is Figure Technology's On-Chain Public Equity Network (OPEN), a platform that reimagines equity trading by leveraging blockchain to bypass traditional intermediaries and democratize access to capital. This analysis explores how OPEN is reshaping equity markets, the regulatory landscape it navigates, and the metrics underscoring its disruptive potential.

A Disruptive Reimagining of Equity Capital Markets

Traditional equity markets are built on a labyrinth of intermediaries, from clearinghouses to prime brokers, each adding layers of cost, complexity, and settlement delays. Figure's OPEN platform challenges this status quo by enabling companies to list equity directly on the Provenance blockchain, eliminating the need for tokenization of DTCC-registered securities. Instead, shares are represented as native blockchain assets, allowing for self-custody trading and instant settlement via Figure's Alternative Trading System (ATS). This disintermediation slashes costs and operational friction, a critical advantage in an era where speed and efficiency dominate investor priorities.

The platform's design also introduces cross-collateralization, enabling investors to leverage both traditional and crypto assets across a unified portfolio. This feature, coupled with the Democratized Prime protocol-a DeFi-based lending system- allows shareholders to borrow against their holdings or lend them for yield, bypassing traditional prime brokers. Such innovations not only democratize access to liquidity but also align with the growing demand for decentralized finance (DeFi) tools in institutional settings.

Regulatory Evolution and Market Legitimacy

Regulatory hurdles have long been a barrier for blockchain-native financial services. However, Figure's collaboration with the SEC has set a precedent. In 2021, the company secured approval to operate as an SEC-registered ATS for digital securities, a milestone that validated its model within existing frameworks. This regulatory clarity was further reinforced by the 2025 GENIUS Act, which established a federal licensing framework for stablecoins and signaled a broader embrace of blockchain in capital markets.

The SEC's Project Crypto initiative, launched in July 2025, underscores this shift. By modernizing securities rules to accommodate on-chain transactions, the project aims to balance innovation with investor protection. Meanwhile, the Trump administration's pro-crypto policies, including the rescinding of restrictive guidance like Staff Accounting Bulletin 121, have created a more hospitable environment for blockchain-based platforms. These developments suggest that regulatory frameworks are evolving to accommodate, rather than stifle, blockchain-native solutions like OPEN.

Real-World Adoption and Performance Metrics

The true test of any disruptive technology lies in its adoption and performance. In Q4 2025, Figure reported a 134% year-over-year increase in Consumer Loan Marketplace Volume, reaching $869 million in December alone. The YLDS stablecoin, integral to the platform's liquidity, surged to $328 million in circulation-a 198% monthly increase. These figures highlight the platform's scalability and its ability to attract both retail and institutional participants.

The Democratized Prime protocol, a cornerstone of OPEN, demonstrated exponential growth: Matched Offers Balance hit $206 million in December 2025, up 442% from November. Borrower Demand and Available Lender Supply also reached $246 million and $213 million, respectively, underscoring the platform's role in bridging traditional and crypto-native capital markets. Such metrics not only validate Figure's business model but also signal growing institutional confidence in blockchain-based financial infrastructure.

Strategic Positioning and Future Outlook

Figure's decision to issue equity through OPEN in a non-dilutive secondary offering marks a pivotal moment. By listing its own shares on the platform, the company demonstrates a vote of confidence in its technology and sets a precedent for other issuers. The two-way exchangeability between OPEN shares and Nasdaq-listed shares further ensures liquidity, addressing a key concern for market participants.

Partnerships with BitGo and Jump Trading LLC add another layer of credibility. BitGo's custodial services and Jump Trading's market-making capabilities position OPEN to scale rapidly, while the platform's alignment with global regulatory trends-such as the EU's MiCA Regulation- ensures its relevance in a competitive landscape. As stablecoin and tokenization frameworks mature, platforms like OPEN are poised to become the backbone of next-generation capital markets.

Conclusion

Figure Technology's OPEN platform is not merely a technological innovation but a paradigm shift in equity markets. By leveraging blockchain to eliminate intermediaries, reduce costs, and enhance transparency, it addresses long-standing inefficiencies in capital allocation. Regulatory clarity, driven by initiatives like the GENIUS Act and SEC's Project Crypto, is accelerating its adoption, while robust performance metrics validate its scalability. For investors, OPEN represents a compelling opportunity to participate in the reimagining of financial markets-one where blockchain's promise of decentralization and efficiency becomes a reality.