Figure Technologies looks to be profiting from increased interest in the cryptocurrency industry. Specifically, in a press release dated May 9, it was announced that the company had secured a $1 billion line of credit on the Provenance.io blockchain. The agreement also involves two other companies, Jefferies and WSFS Institutional Services, which will provide the line of credit.
Figure Technologies is focused on applying blockchain technology to the home equity sector. Figure will leverage the Provenance blockchain in order to sell loans to various financial institutions such as banks, asset managers, and more. All loans will be completed through blockchain technology.
Co-founded by Mike Cagney, who also helped found the online personal finance company SoFi in 2011, the company grew tremendously, boasting hundreds of millions of revenue and over 1,000 employees as of 2019. It was also the first startup online lender to receive a triple-A rating from Moody’s, an influential bond credit rating agency. Cagney resigned from the company amidst accusations of sexual harassment.
It aims to provide consumers with home equity loans in as little as five days, and is already lending out over $1.5 million per day. The company also raised $65 million in February of this year, and the company has already grown dramatically in terms of valuation, from $120 million to somewhere around $365 million. The startup markets itself as offering “5-minute approval and 5-day funding”.
Figure is also interested in offering new products such as checking accounts, wealth management accounts, and reverse mortgage alternatives. Cagney believes the company will be offering more products throughout the year, stating, “At the end of 2019, Figure should look like a robust financial platform that can meet the needs of our customers.”
The new announcement was in the works for quite some time. Jefferies, Figure, and WSFS have ironed out the exact structure and details of the deal over a period of six months. Brian McGrath, head of the Securitized Markets Group at Jefferies, stated:
“We’ve already experienced the benefits of financing on Provenance.io. We’ve gained full transparency into the underlying assets, real-time access to loan performance and the process of accepting collateral has less friction than off chain.”
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