Figure Technology (FIGR): Disrupting Traditional Equity Markets with On-Chain Trading

In 2025, Figure Technology Solutions (FIGR) has emerged as a pivotal force in redefining capital markets through blockchain-driven infrastructure. By leveraging decentralized systems, the company is not only streamlining traditional financial processes but also creating entirely new paradigms for liquidity, transparency, and efficiency. As institutional and retail investors increasingly adopt blockchain-based solutions, FIGR's valuation metrics and market performance underscore its role as a disruptor in the fintech space.

Blockchain as the New Financial Infrastructure

Figure's On-Chain Public Equity Network (OPEN), built on its proprietary Provenance blockchain, represents a seismic shift in equity trading. By enabling direct lending and pledging of shares without intermediaries like custodians or brokers, OPEN eliminates friction in settlement processes, reducing cycles from months to seconds. This innovation mirrors the secondary market's functionality but operates on a public blockchain, offering real-time transparency in ownership and collateral management.

The company's tokenization of real-world assets has further accelerated adoption. By late December 2025, tokenized equities reached a total value of $1.2 billion, with monthly trading volumes climbing to $800 million. This growth is fueled by platforms like Democratized Prime, where matched offers surged to $206 million in December 2025-a 442% increase from November-highlighting robust investor demand. Such metrics reflect a broader trend: blockchain is no longer a niche experiment but a scalable infrastructure for capital markets.

Yield-Bearing Tokens and Stablecoin Innovation

Figure's $YLDS stablecoin, issued on the Solana network and backed by U.S. Treasuries, exemplifies its strategy to bridge traditional and digital finance. Functioning as a tokenized money market fund, $YLDS provides investors with steady returns while enabling 24/7 trading on a public blockchain. By December 2025, $YLDS in circulation reached $328 million-a 1,462% quarter-over-quarter growth-demonstrating strong market confidence in its utility.

This innovation aligns with the rise of stablecoins as a dominant force in global finance. With over $275 billion in assets under management, stablecoins now surpass the transaction volume of traditional payment giants like Visa. Figure's approach, however, distinguishes itself by anchoring value to regulated, real-world assets, a critical factor in attracting institutional capital.

Valuation Metrics: A Premium for Disruption

Despite its high valuation, FIGR's Price-to-Sales (P/S) ratio of 32.5x is justified by its market-leading growth. The US Consumer Finance industry averages a P/S ratio of 1.6x, while FIGR's peer group averages 2.3x according to Simply Wall St. This premium reflects investor expectations for blockchain-driven top-line expansion rather than current earnings, as the company reported $2.705 billion in Q4 2025 origination volume-a 131% year-over-year increase.

Similarly, FIGR's Price-to-Earnings (P/E) ratio of 134.77 underscores optimism about its future profitability. The company's 81% year-over-year revenue growth and 75% adjusted EBITDA growth in 2025 validate this optimism. While skeptics may question the sustainability of such metrics, the broader crypto market's maturation- marked by a $4 trillion market cap and $175 billion in institutional capital flowing into exchange-traded products (ETPs)-provides a tailwind for blockchain-native firms like Figure.

Regulatory Tailwinds and Market Adoption

The passage of the GENIUS Act in the U.S. has further accelerated Figure's trajectory by providing a regulatory framework for asset-backed digital finance. This legislation, coupled with tokenization of government debt and private credit, has normalized blockchain's role in capital markets. Traditional financial institutions, including BlackRock and JPMorgan, are now offering crypto products, signaling a paradigm shift in how markets perceive blockchain-based assets.

Conclusion: A New Era for Capital Markets

Figure Technology's blockchain-driven infrastructure is not merely an alternative to traditional finance-it is redefining its core principles. By digitizing equity lending, creating yield-bearing stablecoins, and reducing settlement times to near-instantaneous levels, FIGR is capturing a significant share of the $2.7 trillion U.S. secondary market. While its valuation metrics appear lofty, they align with the explosive growth of the crypto ecosystem and the increasing institutional adoption of blockchain-based solutions. For investors, the question is no longer whether blockchain will disrupt finance, but how quickly.