Figure completes its first securitization of assets on the blockchain

Credit: Mike Cagney – CEO and co-founder of Figure Technologies

American fintech Figure Technologies has completed an initial process of securitization assets on its blockchain Origin.

Figure Technologies finalized a securitization of $ 150 million of a real estate equity line of credit (HELOC) on the blockchain, reports Coindesk.

The securitization is a process of transferring assets such as claims and loans to investors, transforming them into financial securities.

By automating the stages of this financial technique on its blockchain, fintech wants to speed up the process and reduce costs. She believes, in the long term, to be able to save 30 billion dollars at securitization market, which today weighs more than $ 3 trillion.

It costs much less to make loans on the blockchain. We don't have to pay boarding fees, loan defaults, while reducing quality control expenses, ”said Mike Cagney, CEO and co-founder of Figure.

Founded in 2018 by Mike Cagney, who is also the co-founder of SoFi, Figure has already marketed a product based on the blockchain called Figure Home Equity Loan Plus and which allows borrowing at fixed rates.

Last year, the company collected $ 65 million with venture capital companies RPM Ventures and Ribbit Capital. Then, $ 103 million from MUFG Innovation Partners, Digital Currency Group and other leading investors. It is now valued at more than $ 1 billion.