Figure's OPEN Network: Building the Rails for the On-Chain Equity S-Curve

The traditional equity market operates on a legacy infrastructure that is fundamentally slow and costly. Its core process, known as T+2 settlement, requires two business days for trades to clear and settle. This multi-day window creates a chain of inefficiencies: capital sits idle, manual reconciliation is needed, and counterparty risk persists for an extended period. For all its scale, this system is a bottleneck, adding layers of operational expense and friction to every transaction.

This is the problem Figure's OPEN Network is built to solve. The company aims to replace these aging rails with a new paradigm: real-time, blockchain-based settlement. By automating the entire trade lifecycle through smart contracts, OPEN targets an average cost reduction of over 100 basis points per transaction. This isn't just incremental improvement; it's a first-principles redesign of how equity trades are settled, promising to free up capital, eliminate reconciliation errors, and reduce counterparty risk to near zero.

The scale of the opportunity is what makes this a potential exponential S-curve. The global equity market is worth more than $110 trillion. If OPEN's infrastructure can capture even a modest fraction of this volume by providing faster, cheaper, and more secure settlement, the growth trajectory would be transformative. The model is proven in adjacent markets: Figure's Provenance Blockchain has already demonstrated how tokenizing loans can save over 100 basis points per transaction, adding up to potential industry savings of over $163 billion in a single $14 trillion market. The same principles apply to equities, but at a vastly larger scale. The setup is clear: Figure is building the foundational infrastructure layer for a new paradigm of equity trading, and the addressable market is the entire global equity universe.

The Infrastructure Layer: Provenance Blockchain and the Figure Ecosystem

The real test of any infrastructure play is whether it can deliver on its promise at scale. For Figure, the proof is already in the ledger. The OPEN Network doesn't exist in a vacuum; it operates on the Provenance Blockchain, a platform Figure has been using to originate over $21 billion in home equity financing. This isn't a theoretical sandbox. It's a live, production-grade system that has already demonstrated its core value proposition: exponential efficiency gains through automation.

The numbers are compelling. Implementation on Provenance has saved an average of over 100 basis points in costs for loan lifecycle operations. More specifically, the company cites 117 basis points saved per loan. These aren't minor tweaks. They represent a fundamental shift from manual, multi-day processes to smart contract automation and real-time settlement. The result is a system that reduces third-party service fees, slashes operational expenses, and frees up capital by eliminating counterparty risk. For the $14 trillion annual securitization market, this adds up to potential industry savings of over $163 billion. This is the kind of cost curve displacement that defines a technological S-curve.

This existing capability forms the bedrock for OPEN. The Provenance platform has already proven it can handle complex, high-value financial assets end-to-end. The next step is scaling that same architecture to the vastly larger global equity market. The technological stack is validated; the challenge now is adoption velocity.

Beyond the core blockchain, Figure is building a complementary ecosystem that could accelerate this adoption. The company has launched a suite of integrated products. This includes the SEC-approved YLDS stablecoin, which provides a compliant, yield-bearing dollar peg for the on-chain economy. It also operates a decentralized custody marketplace designed to integrate various assets. Together, these components create a potential integrated suite-a one-stop shop for tokenized assets, lending, and trading. This ecosystem approach reduces friction for market participants, making it easier to move from traditional finance into the new paradigm Figure is building. The infrastructure is being layered with the tools needed to power it.

Adoption Trajectory and Financial Metrics

The market's verdict on Figure's OPEN Network is clear and explosive. The stock has seen a 134% surge over the past 120 days, with a 53% climb in just the last 20 days. This isn't just a speculative pop; it's a direct valuation of the OPEN narrative. Investors are betting that Figure is building the foundational rails for the next paradigm in equity trading, and they are pricing in the potential for exponential adoption.

The company is moving from announcement to execution with a concrete path to market. In November 2025, Figure filed a public registration statement for a non-dilutive secondary equity offering as the first issuance on the OPEN Network. This is a critical step. It signals that the platform is no longer just a concept but a viable channel for capital raising, with Figure itself set to be the first issuer. This creates a live use case and a feedback loop: the success of its own offering will be a key indicator of the platform's early traction.

For any new trading venue, liquidity and security are non-negotiable. Figure is addressing these head-on with strategic partnerships. Market-making giant Jump Trading LLC is preparing to provide liquidity, a vital function for establishing fair prices and reducing volatility. At the same time, BitGo is signing on to offer qualified custodial services, tackling the security and custody needs of shareholders. These are not peripheral deals; they are the essential infrastructure components that will determine whether the platform can attract and retain institutional and retail participants.

The financial metrics, however, reflect the high expectations baked into this S-curve bet. The stock trades at a price-to-sales ratio of 29 and a trailing P/E of over 100. These multiples are not for the faint of heart and imply near-perfect execution and rapid scaling. The market is paying for the potential, not the present. The key will be translating the technological promise and early partnerships into measurable adoption velocity. The first issuance is the first test.

Valuation, Catalysts, and the Network Effect Moat

The investment case for Figure now hinges on a high-stakes bet: that the OPEN Network can disrupt a multi-trillion-dollar paradigm. The valuation already reflects this exponential promise. The stock trades at a price-to-sales ratio of 29, with an enterprise value to sales multiple of 27.6. These are not multiples for a company in its early growth phase; they are pricing in a near-perfect execution of the OPEN S-curve, where the platform captures a significant share of the global equity market. The market is paying for the potential of a new infrastructure layer, not the current financials.

The immediate catalyst is the successful execution of the first OPEN issuance. Figure has already filed a public registration for a non-dilutive secondary equity offering as the first issuance on the network. This is the first real test. It will demonstrate whether the platform can attract issuers and, more critically, whether the promised liquidity from partners like Jump Trading and BitGo can materialize. A smooth, high-volume offering would validate the core value proposition and act as a powerful signal to other companies considering the move. Conversely, weak demand would expose the gap between the technological promise and market adoption.

The primary risk is the formidable network effect moat of traditional exchanges. The current equity market is a deeply entrenched system with massive scale, regulatory familiarity, and established liquidity pools. For OPEN to displace it, it must offer not just incremental improvements but a step-change in efficiency and cost. The company's prior experience shows it can save over 100 basis points per transaction in a smaller market. The challenge is scaling that same cost curve displacement to a market 100 times larger, while simultaneously building the liquidity and trust that incumbents have cultivated for decades.

The path forward is a classic infrastructure build-out. Success will depend on Figure's ability to turn its first issuance into a feedback loop, using the resulting data and traction to attract more issuers and deeper liquidity. The company is betting that the paradigm shift to real-time, on-chain settlement is inevitable, and that its early lead in a production-grade blockchain platform gives it a crucial first-mover advantage in building the new rails. The valuation is a bet that this bet will pay off.