Figure launches blockchain-based marketplace for private credit loans

By Housing News


Figure
Technology
Solutions
,
the
parent
company
of

Figure
Lending
LLC
,
has
launched
a
blockchain-based
marketplace
to
connect
buyers
and
sellers
of
private
credit
loans,
promising
to
reduce
settlement
timelines
and
create
greater
pricing
certainty. 

The
launch,
announced
on
Wednesday,
comes
less
than
two
months
after
Figure
named
tech
veteran

Michael
Tannenbaum


who
led
fintech
company

Brex

for
seven
years

as
its
new
CEO.
Tannenbaum
replaced
founder
Mike
Cagney,
who
continues
to
serve
as
executive
chairman. 

The
new
platform,
Figure
Connect,
allows
originators
to
“receive
forward
commitments
from
buyers,
lock
active
bids,
control
loan
pricing
to
balance
profitability
and
volume,
and
deliver
pools
of
loans
into
those
commitments,”
the
company
explained
in
a
news
release.
It’s
integrated
into
Figure’s
loan
ecosystem
and
is
available
to
all
participants.

Based
on

Provenance
Blockchain
,
the
platform
offers
common
and
standardized
key
characteristics
of
loan
pools
and
sale
terms,
reducing
the
typical
settlement
process
from
months
to
days,
Figure
stated. 

Tannenbaum
said
the
platform
creates
“the
first
highly
liquid
private
capital
marketplace
for
loans”
and
offers
“unique
certainty
of
funding”
to
originators
and
“standardization
to
loan
buyers.”

Initial
partners
include

The
Loan
Store
,

Movement
Mortgage
,

Bayview
Asset
Management

and

Saluda
Grade
.

In
early
April,
Figure
announced
the
rollout
of
its

Digital
Asset
Registration
Technologies

(DART)
platform,
which
was
made
available
to
private
and
wholesale
lending
partners.
DART
is
a
mortgage
processing
product
designed
to
offer
the
industry
an
alternative
to
offerings
from

Mortgage
Electronic
Registration
Systems

(MERS). 

In
March,
the
company
took
a
step
toward

becoming
public

by
submitting
a
draft
registration
statement
with
the


U.S.
Securities
and
Exchange
Commission

(SEC)
regarding
a
proposed
initial
public
offering
of
its
equity
securities.

 

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