Figure Technology Stock: Using Blockchain For Real World Problems?

Figure Technology Solutions (NASDAQ:FIGR), a blockchain platform for financial services, made its debut on the public markets last week. The company set its initial public offering price at approximately $25 per share, raising $787.5 million, with shares closing at $31.11, about 24% higher than the IPO price on the first day of trading. The stock is currently priced around $37 per share. Unlike many of the recent market launches focused on cryptocurrency treasury assets, Figure aims to utilize blockchain to address real-world issues rather than merely speculating on token valuations. So, does this make the stock appealing?

Blockchain Tech In Finance

Co-founded in 2018 by former SoFi CEO Mike Cagney, Figure is creating a blockchain-based lending platform aimed at simplifying consumer credit. The company initially concentrated on home equity lines of credit (HELOCs), where blockchain significantly accelerates the loan funding process compared to conventional banks. Over time, Figure has expanded its focus, having financed over $16 billion in loans through its blockchain system. Its product range now includes partner-branded and direct-to-consumer HELOCs, crypto-backed loans, and a digital asset exchange, with plans to further extend into auto loans and small business financing.

Technology plays a crucial role in the company’s value proposition. It’s noteworthy that Figure does not rely on cryptocurrencies such as Bitcoin or Ethereum for its operations. Instead, it employs its own Provenance Blockchain to manage and document transactions. The blockchain serves as the backbone, allowing loan origination, funding, and securitization processes to be quicker, more affordable, and more transparent. The company generates revenue through several channels: loan origination fees, servicing fees, profits from loan sales, and technology usage fees associated with its blockchain-based lending platform.

Essentially, Figure generates revenue by taking a share of the loan volume it facilitates. To demonstrate the effectiveness of its model, Figure’s founder has likened it to the stock market: in today’s framework, up to seven different parties can be involved in a single trade between buyers and sellers, while blockchain could potentially condense that to just two. This efficiency improvement—eliminating intermediaries while maintaining security and transparency—is what Figure is applying to consumer credit. The company is also incorporating artificial intelligence, using OpenAI’s technology to assist in evaluating loan applications.

Strong Financials

The company enters the public market with significant momentum. For the first half of 2025, revenue totaled $190.6 million, compared to $156 million the previous year. Net income reached $29.1 million, representing a substantial recovery from a $15.6 million loss in the same period of the prior year. Its customers tend to be prime borrowers, with average FICO scores surpassing 750, which gives the platform a strong credit profile. For the twelve months ending June 30, 2025,

Figure facilitated nearly $6 billion in home equity lending, a 29% increase year-over-year. With a current market capitalization of around $8 billion, the stock is trading at approximately 20 times the run-rate revenues based on the results from the first half of the year. Although this is a high valuation, the company’s technology and asset-light model could enable it to scale significantly. There may also be substantial growth potential, considering the $35 trillion in outstanding U.S. home equity serves as a key growth driver.

The company frames its mission around the democratization of financial services—leveraging blockchain to eliminate inefficiencies, lower costs, and broaden access. However, while the potential is enticing, there are lingering risks. Regulatory scrutiny concerning blockchain-based lending and digital asset services has not yet matured. As Figure ventures into new arenas such as auto and small business loans, there could be significant execution risks, particularly from established banks and lenders. Macro challenges such as rising interest rates or a possible economic downturn could impact consumer credit performance.

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