Is Figure Technology’s $526M IPO a Strategic Buy for 2025’s Crypto-Fintech Wave?

The U.S. fintech and blockchain sectors are experiencing a renaissance in 2025, driven by a confluence of regulatory clarity, technological innovation, and investor appetite for high-growth opportunities. At the forefront of this wave is Figure Technology, a blockchain-powered lender preparing for a $526 million IPO to raise 26.3 million shares at $18–$20 apiece, targeting a $4.13 billion valuation [1]. With a 22% revenue surge in the first half of 2025 and a $29 million profit (versus a $13 million loss in 2024), Figure’s financials suggest a compelling narrative of scalability and profitability [2]. But is this IPO a strategic buy for investors navigating the crypto-fintech bull market?

Blockchain Lending’s Scalability: A Market on the Cusp of Mainstream Adoption

The blockchain lending market is poised for exponential growth, with the broader blockchain technology sector projected to expand from $31.18 billion in 2025 to $393.42 billion by 2032, at a 43.65% CAGR [3]. This growth is fueled by Figure’s core innovation: using blockchain to tokenize real-world assets (RWAs) and streamline lending processes. For instance, Figure’s platform funds home equity loans in 10 days versus the industry average of 42 days, leveraging smart contracts to automate underwriting and reduce operational costs [1].

Figure’s scalability is further amplified by its integration with AI-driven credit scoring and embedded finance models. Unlike traditional banks, which rely on legacy systems and rigid risk assessments, Figure’s blockchain infrastructure enables real-time data verification and peer-to-peer (P2P) lending, expanding access to underserved markets [5]. This aligns with broader fintech trends, where the sector is expected to grow sixfold to $1.5 trillion by 2030, outpacing traditional banking in innovation and customer-centricity [4].

Profit Potential: Balancing Innovation and Regulatory Tailwinds

Figure’s financial performance underscores its profit potential. In Q1 2025, the company reported $355 million in annualized revenue and $121 million in EBITDA, with a credit loss rate of less than 1%—a testament to its robust risk management [2]. The IPO proceeds will fund expansion into digital asset markets and the scaling of its BOTQ manufacturing facility, targeting a $6 trillion consumer credit and digital asset market [2].

Regulatory developments in 2025 have also created a favorable environment. The Trump administration’s Working Group on Digital Asset Markets report, issued in January 2025, emphasized responsible innovation and reduced barriers for banks offering custody services [6]. Additionally, the passage of the GENIUS Act in July 2025 clarified stablecoin regulations, excluding them from the definition of “security” while enforcing AML/BSA compliance [7]. These measures validate Figure’s tokenization strategy and reduce compliance burdens for institutional investors.

Risks and Competitive Challenges

Despite its strengths, Figure faces headwinds. The blockchain fintech sector trades at a valuation gap, with multiples of 4.1x–6.1x revenue compared to 7.4x for other fintech verticals [2]. Custody risks, market volatility, and competition from both traditional banks and DeFi platforms could pressure margins. For example, South Korea’s Financial Services Commission halted new crypto lending in August 2025 due to overleveraged loans, highlighting systemic risks [8].

Moreover, Figure’s reliance on AI and blockchain exposes it to technical scalability issues. While its platform processes HELOCs in five minutes, broader adoption of tokenized RWAs depends on infrastructure upgrades and cross-industry collaboration [2].

Strategic Buy or Speculative Bet?

Figure’s IPO represents a high-conviction play on the convergence of blockchain, AI, and fintech. Its ability to tokenize illiquid assets, reduce lending friction, and capitalize on regulatory tailwinds positions it as a leader in a $130 billion market opportunity [2]. However, investors must weigh these opportunities against valuation gaps and sector-specific risks.

For those with a long-term horizon and a tolerance for volatility, Figure’s IPO could be a strategic buy. The company’s 22% revenue growth, $29 million profit, and alignment with 2025’s regulatory and technological trends suggest a compelling value proposition. Yet, as with any high-growth fintech, prudence is warranted. The key will be monitoring Figure’s ability to scale profitably while navigating the evolving crypto-fintech landscape.

Source:
[1] Figr IPO: FIGURE eyes $4.1B valuation with 22% revenue surge [https://m.economictimes.com/news/international/us/figr-ipo-figure-eyes-4-1b-valuation-with-22-revenue-surge-is-fintechs-next-big-breakout-here/articleshow/123661457.cms]
[2] Blockchain-Driven Fintech Innovation: Figure Technology Solutions [https://www.ainvest.com/news/blockchain-driven-fintech-innovation-figure-technology-solutions-nasdaq-ipo-gateway-6-trillion-consumer-credit-digital-asset-markets-2508/]
[3] Blockchain Technology Market Size, Share, Value [https://www.fortunebusinessinsights.com/industry-reports/blockchain-market-100072]
[4] Fintech Industry Growth: $1.5T Market Value Signals New [https://www.netguru.com/blog/fintech-industry-growth]
[5] Lending Fintech in 2025: A New Era of Innovation and [https://www.linkedin.com/pulse/lending-fintech-2025-new-era-innovation-opportunity-propelld-fqzuf]
[6] 2025 regulatory preview: Understanding the new US [https://www.statestreet.com/us/en/insights/digital-digest-march-2025-digital-assets-ai-regulation]
[7] Mid-Summer Developments in Crypto Legislation and Regulatory Guidance [https://www.chapman.com/publication-mid-summer-developments-in-crypto-legislation-and-regulatory-guidance]
[8] Can crypto lending return on the back of the regulatory wave? [https://finance.yahoo.com/news/crypto-lending-return-back-regulatory-091200036.html]