Sixth Street Backs Figure Tech with $200M for Blockchain Lending Expansion

Global investment firm Sixth Street has made a significant move in the fintech industry by investing $200 million in Figure Technology Solutions, a US-based lender that leverages blockchain technology to enhance efficiency and reduce costs in the lending market. This strategic investment, announced on February 27, will enable Figure to issue up to $2 billion in new loans and expand its reach into other lending markets.

Figure Technology Solutions, previously known as Figure Technologies, primarily focuses on home improvement loans but also offers business loans and debt consolidation services. Its personal lending business allows cryptocurrency investors to take out collateralized loans. With a presence in 47 US states, the company claims to have served over 100,000 households.

Sixth Street's investment in Figure Technology Solutions marks an expansion of its presence in the fintech industry. In December 2024, the investment firm backed consumer lending company Affirm in a $4-billion deal. This latest investment demonstrates Sixth Street's commitment to supporting innovative financial technology companies.

The blockchain and cryptocurrency sector is expected to see increased venture capital investments in 2025, despite an uncertain macroeconomic backdrop. According to PitchBook, venture capital investments in the sector are projected to reach $18 billion this year, up from $13.6 billion in 2024. A recent report from Galaxy Research also predicts a 50% year-over-year increase in blockchain venture deals.

Jeffrey Hu, head of investment research at HashKey Capital, believes that venture firms are increasingly focusing on consumer-oriented applications of blockchain technology. Promising use cases include decentralized physical infrastructure networks (DePINs) and real-world assets. As the industry continues to evolve, investors are seeking innovative solutions that can drive growth and disruption in the financial sector.