Figure Markets

Figure Markets originates its own asset inventory — primarily tokenized home equity lines of credit — via the Provenance Blockchain, rather than relying solely on customer deposits and third-party listing fees. These on-chain loans serve as yield-bearing collateral within the same marketplace where spot crypto and equity trading occur. This structure makes the firm a vertically integrated originator, issuer, and trading venue, which differs from exchange models that depend on external liquidity providers.

Both firms were founded by Mike Cagney and share Provenance Blockchain as core infrastructure, but they operate as separate entities with different business focuses. Figure Technologies primarily originates home equity products and provides lending-as-a-service to banks and credit unions. Figure Markets was launched to build the exchange and custody layer — allowing investors to trade tokenized Figure assets alongside digital securities and cryptocurrencies in a registered broker-dealer environment.

The firm operates through a U.S. broker-dealer license and a money transmitter license in Puerto Rico. In 2024, it also established a Bermuda-licensed digital asset exchange via a regulatory sandbox. This multi-jurisdictional approach allows it to offer spot and margin crypto trading, custody, and tokenized real-world asset trading under distinct regulatory frameworks.

The platform offers spot and margin trading for digital assets, tokenized home equity lines of credit, and tokenized equity securities — including its own public offering in mid-2024. It does not originate auto loans, student loans, or commercial real estate, instead concentrating on residential housing credit where Provenance adoption among loan originators is deepest.

In July 2024, Figure Markets launched a public offering of its own equity shares, issued as digital securities on Provenance Blockchain and available for trading through its own marketplace. This self-underwritten structure bypassed traditional investment bank intermediation and demonstrated the platform's capability to handle both primary issuance and secondary trading natively on-chain — a proof-of-concept that few regulated broker-dealers have attempted.

Custody is handled on the Provenance Blockchain, with Figure Markets operating qualified custodian infrastructure for digital securities. The same blockchain records both tokenized equity and loan positions, meaning settlement and collateral management occur on a shared ledger rather than across separate systems for crypto assets and traditional securities. This collapses the typical intermediary stack that partitions custody, clearing, and settlement across unaffiliated providers.

Figure Markets has raised external venture capital from firms including Jump Crypto and Pantera Capital, but its primary capitalization vehicle has been public digital security offerings through its own platform. The firm has not publicly disclosed a dedicated fund-of-funds program or co-investment vehicle for external GPs, instead channeling investor interest into direct tokenized equity and asset purchases on its marketplace.