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Figure debuts on the Blockchain-based private credit market
Figure Technological solutions launched a blockchain-based multi-seller, multi-buyer marketplace for private credit lending.
Dubbed “Figure Connect” and billed as a first-of-its-kind offering, the marketplace brings the company’s capital markets buyers to its lending partners, Figure said in a Press release Wednesday (June 12).
The market represents a step toward building the first “highly liquid private capital market for lending,” he said Michael TannenbaumCEO of Figure.
“With Figure Connect, originators can receive future commitments from buyers, lock in active offers, control loan pricing to balance profitability and volume, and provide pools of loans into those commitments,” the release reads.
“This functionality is facilitated by common, standardized sales terms and documentation. Figure believes its lending partners now have unprecedented control over their businesses with committed liquidity, transparency and informed loan pricing management, all integrated into Figure’s lending ecosystem,” the release added.
According to the release, Figure Connected uses Provenance Blockchain, a distributed, proof-of-stake blockchain, to increase efficiency for loan buyers and sellers, allowing loans that may have taken months to settle to be resolved in just days.
“Figure Connect helps disintermediate the loan origination process by standardizing key features of loan pools and sales terms and creating greater pricing certainty before initial loan disbursement,” the company said. “Ultimately, Figure believes this generates market liquidity by adding funding certainty for loan originators and collateral composition for loan purchasers.”
In other recent blockchain-related news, PYMNTS wrote last week that companies are increasingly exploring the technology’s potential to streamline cross-border payments while achieving better cash flow and liquidity management.
“These payments were burdened by high costs, slow settlement times and lack of transparency in traditional payment systems,” the report states. “This friction imposes a punitive burden on businesses operating in multiple markets, stifling growth and innovation.”
But the evolution of blockchain technology could promise to reshape the landscape by providing a streamlined, affordable and secure alternative to traditional methods.
Assuming it is blockchain based cross-border payments Going from experimental to essential will change the way businesses transact with each other around the world.
“However, just as fiat and home payment innovations must meet end-user expectations, cross-border settlements must align with local market requirements, making compliance critical to any large-scale innovation,” PYMNTS wrote.
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