Figma’s On-Chain IPO Cuts Underwriting Costs to Under 1% from 3-7% Boosting RWA Market

Figma, the design collaboration platform valued at $20 billion following a canceled Adobe acquisition, has launched the world’s first on-chain initial public offering (IPO) through tokenized stocks, marking a pivotal shift in corporate fundraising and real-world asset (RWA) tokenization. The move leverages blockchain technology to eliminate traditional underwriting fees and enhance liquidity, signaling a potential $1 trillion market opportunity for RWA adoption. By converting equity into blockchain-based tokens, Figma enables 24/7 global trading, bypassing geographical and temporal restrictions of conventional stock exchanges [1].

The on-chain IPO model slashes underwriting costs from 3-7% to under 1%, saving tens of millions in fundraising expenses for large-scale ventures like Figma. Tokenized stocks also offer superior liquidity, allowing investors to trade shares continuously and exit positions more flexibly compared to traditional markets. This innovation aligns with Figma’s strategic emphasis on democratizing access to high-growth enterprises, as its browser-based platform already serves 4 million paying users and 67% of the design collaboration tools market. The company’s revenue has grown by over 50% annually, supported by a sticky SaaS model with high retention rates and network effects [1].

Technically, Figma’s tokenized stocks comply with regulatory standards through Security Token protocols, ensuring dividend rights and voting privileges are automated via smart contracts. Multi-signature and time-lock mechanisms safeguard governance, while KYC/AML procedures verify investor qualifications. This structured approach addresses compliance concerns that have historically hindered blockchain adoption in finance. By demonstrating a scalable, regulated framework, Figma’s IPO could encourage traditional institutions to explore tokenization, potentially reshaping the $100 trillion global stock market [1].

The RWA sector stands to gain significantly, as Figma’s case provides a blueprint for enterprises seeking cost-efficient, transparent fundraising. Analysts note that even a 1% tokenization of the stock market could unlock $1 trillion in value for RWAs. For investors, the innovation lowers entry barriers, enabling ordinary individuals to participate in equity ownership of high-performing companies. However, risks include regulatory uncertainty and technical vulnerabilities inherent to blockchain systems. Investors are advised to prioritize platforms with robust compliance and security measures and to allocate tokenized assets as part of a diversified portfolio [1].

Figma’s IPO reflects broader trends toward financial democratization, where technology reduces information asymmetry and enhances market accessibility. As regulatory frameworks evolve, on-chain IPOs may become standard for corporations aiming to optimize capital efficiency and global reach. The move underscores blockchain’s maturation beyond speculative assets to institutional-grade applications, with Figma’s leadership in design tools paralleling its pioneering role in financial innovation.

[1] Source: [1]title1.............................(https://coinmarketcap.com/community/articles/6889d908b68c6f644094b341/)