Prior CEO of SoFi Lands $1 Billion Blockchain Investment for FinTech Project Figure Technologies
Figure Technologies, a committed blockchain lending startup company, created by Mike Cagney, also the former Chief Executive Officer, recently lands a $1 billion credit line on a blockchain.
Figure Technologies was created to remove home equity landing structure through the use of improved technologies. No doubt, the company is achieving great strides with its recent $1 billion investment.
The company announced on Thursday that it landed $1 billion investment in conjunction with Jefferies and WSFS Institutional Services on an asset-based financing structure that is based on blockchain technology.
The asset-based financing structure is situated on Provenance.io, which is a blockchain-based platform created by Figure in 2018 to actualize, fund, and sell HELOCs to banks and asset managers.
It is important to note that Jeffries may use occasionally loan Figure and this deal is part of the changing funding memorandum held by the home equity lines of Figure.
However, Figure’s closing of $1 billion credit line on its blockchain-based platform was aimed to revolutionize HELOC lending. There is a maximum amount of loan that can be lent and paid back again on credit lines.
Figure, however, stated that it has been in collaboration with Jefferies and WSFS – a sector of WSFS Bank, a trustee for Jefferies – for the past 6 months to create the asset-based financing structure on Provenance.
The CEO of the Securitized Markets Group at Jefferies Brain McGrath stated:
“We’ve already experienced the benefits of financing on Provenance.io. We’ve gained full transparency into the underlying assets, real-time access to loan performance and the process of accepting collateral has less friction than off chain.”
Figure stated that it created more than $59 million of HELOCs on blockchain last month. This is in-line to offer each of its customers 5-day funding that it promised earlier.
Figure has achieved other feats, and its CEO Cagney stated his intentions to make use of blockchain, Artificial Intelligence to improve the home equity in all measure.
Cagney emphasized the plan to announce home-improvement loans, HELOCs, and sale-leaseback products for retirements; as of now, the company has procured a capital of $120 million for this plan.
It is also essential to know that if Figure’s potential securitization deal ends, it will be termed the first security transaction backed by assets with loans created on a blockchain platform, according to WSFS’ senior vice president and director of corporate trust, Kristin Moore.
Figure’s growth is immense, and at the moment, the company boasts of 100 employees in offices in California, Nevada, Montana, and Utah. The company offers two services at the moment: Figure Home Equity Loan and Figure Home Equity.
No doubt, the present $1 billion blockchain investment can help Figure actualize its goals of creating a fast home equity access to its end customers.
Mike Cagney also added:
“With the financing facility now in place, Provenance.io can support the entire end-to-end financing of loans, from origination to funding to servicing and to financing. It paves the way for the first securitization on the chain, which will demonstrate the massive cost savings, risk reduction, and liquidity benefits blockchain delivers.”