On September 11, blockchain lending company Figure officially listed on the U.S. stock market, with its market capitalization reaching a high of $7.8 billion on the first day and closing at around $6.5 billion. Figure founder Mike Cagney took the opportunity of the IPO to share his thoughts on the future of blockchain and capital markets.
Cagney recalled that the end of 2017 was his true "aha moment." Although blockchain operates slowly and has low fault tolerance, it possesses the core value of replacing "trust" in traditional finance with transparency and truth. In past financial transactions, multiple layers of intermediaries were often involved, increasing costs and risks. Blockchain, however, can simplify the market by directly connecting buyers and sellers, eliminating significant rent-seeking opportunities.
More importantly, blockchain not only enhances existing efficiency but also creates new market opportunities for illiquid assets (such as loans). Digital, controllable, and liquid assets will revolutionize financing models. Figure's mission is to reconstruct capital markets through blockchain.
In 2018, Figure started with originating on-chain consumer loans and gradually expanded to a B2B2C model. Today, over 168 institutions use its technology. In 2020, it completed the world's first securitization of on-chain consumer loans, and in 2023, it achieved the first AAA-rated securitization. To date, Figure has originated over $15 billion in loans, with on-chain transaction volumes exceeding $50 billion, making it a leader in the RWA field.
To support this progress, the team built the Provenance public chain, focused on financial services. Based on PoS consensus, it addresses cost and speed issues and provides a foundation for institutional adoption. Cagney believes blockchain's value is reflected in three aspects: reducing transaction costs, providing 24/7 liquidity, and most critically, enabling financing functions. Through on-chain registration and collateral mechanisms, lenders and borrowers can connect directly, building a more efficient capital market.
He firmly believes that DeFi will become the mainstream method for asset financing. Against the backdrop of gradually clarifying U.S. regulations and the accelerating integration of stablecoins with RWA, trillions of dollars are expected to flow into the blockchain capital market. This not only compensates for the shortcomings of traditional finance but also opens up a全新的生态 (completely new ecosystem).
In his view, the IPO is just one step in Figure's long journey. Just as Web2.0 gave birth to tech giants, Web3.0 will also see the emergence of leading enterprises in the blockchain era, and Figure hopes to be the most representative force among them.
