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Figure Launches Blockchain-Based Marketplace for Private Credit Lending
Figure Technological solutionsthe parent company of LLC loan figurehas launched a blockchain-based marketplace to connect buyers and sellers of private credit loans, promising to reduce settlement times and create greater price certainty.
The launch, announced Wednesday, comes less than two months after Figure was named a technology veteran Michael Tannenbaum – who led the fintech company Brex for seven years – as the new CEO. Tannenbaum replaced founder Mike Cagney, who continues to serve as executive chairman.
The new platform, Figure Connect, allows originators to “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 company explained in a press release . It is integrated into Figure’s lending ecosystem and is available to all participants.
Based on Blockchain provenancethe platform offers common and standardized key features of loan pools and sales terms, reducing the typical settlement process from months to days, the figure says.
Tannenbaum said the platform creates “the first highly liquid private capital market for loans” and offers “unique funding certainty” to originators and “standardization to loan buyers.”
Initial partners include The loan shop, Movement mortgage, Bayview Resource Management AND Grade Greetings.
In early April, Figure announced the launch of its Digital asset recording technologies (DART), which was made available to private and wholesale lending partners. DART is a mortgage processing product designed to offer the industry an alternative to the offerings of Electronic mortgage registration systems (MERS).
In March the company took a step forward becoming public by submitting a draft registration statement to United States Securities and Exchange Commission (SEC) regarding a proposed initial public offering of its equity securities.