Figure Launches Tokenized Stock with $150 Million Offering
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Figure is set to introduce its tokenized stock, coinciding with a significant $150 million offering increase. This move marks a significant step for the blockchain company led by former SoFi CEO Mike Cagney.
The newly introduced stock token, designated as FGRD, will operate on Figure’s Onchain Public Equity Network (OPEN). This platform allows the stock to be issued, traded, and settled directly on the blockchain, effectively eliminating the reliance on traditional clearing and custody systems.
With FGRD, transactions are documented and completed on the blockchain, providing quicker execution and enhanced programmable compliance. Investors can engage with this asset via the Figure Markets app or through self-custody wallets linked to the network. Furthermore, they will have the opportunity to utilize their stock tokens for lending or borrowing through Figure’s decentralized finance platform, Democratized Prime.
The company’s infrastructure supports a blockchain-focused capital markets system that integrates loan origination, funding, and secondary trading. Figure has successfully originated over $22 billion in home equity loans and offers various services, including digital asset custody and tokenization.
Interest in tokenized equities has surged recently due to their potential benefits, such as reducing settlement risks and enhancing market transparency and accessibility. Unlike many tokenized stocks that rely on off-chain assets and intermediaries, FGRD is natively issued on-chain, representing real ownership.
Mike Cagney expressed that the traditional public equity market is outdated and needs reformation. He believes that the introduction of FGRD will modernize the capital markets infrastructure to be more real-time, transparent, and efficient, removing unnecessary intermediaries that contribute to costs and risks.
This launch comes at a time when Figure is also conducting its secondary public offering, which has been increased to $150 million, with participation from venture firm Pantera Capital. Additionally, Figure plans to repurchase $10 million of its common stock from current shareholders.
After going public in September, Figure’s shares have fluctuated, reflecting the broader volatility in the crypto market.
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