▼ Summary
– Figure Technology has filed for an IPO on Nasdaq, with Goldman Sachs, Jefferies, and BofA Securities as lead bookrunners, though share numbers and pricing are not yet set.
– The company reported a $29 million profit in the first half of the year, with revenue rising 22.4% to $191 million, reversing a loss from the previous year.
– Figure is a major blockchain-based lending firm, using its Provenance blockchain to expedite loan approvals and claiming to be the largest non-bank provider of home equity lines of credit.
– Co-founder Mike Cagney, who previously built SoFi, has a history of regulatory ambitions, including a withdrawn application for a national bank charter and recent leadership changes, including a new CEO.
– This IPO follows a failed SPAC merger attempt and aligns with a trend of crypto-related companies going public, encouraged by successful debuts like Circle and supportive regulatory environments.
Figure Technology, a blockchain lending firm established seven years ago, has officially submitted plans for an initial public offering of its Class A common stock on the Nasdaq exchange. Leading the underwriting efforts are Goldman Sachs, Jefferies, and BofA Securities, though specifics regarding the number of shares and their pricing remain undisclosed at this stage.
The company’s recent financial performance reveals a notable upswing. During the six-month period ending June 30, Figure reported a 22.4% increase in revenue, reaching $191 million. More impressively, it turned a profit of $29 million during that span, a significant improvement compared to the $13 million loss recorded during the same timeframe the previous year.
This IPO represents a pivotal moment for co-founder Mike Cagney, who previously founded SoFi before departing in 2017 amid allegations of sexual misconduct. SoFi eventually went public in 2021 through a SPAC merger and has since performed strongly, with its stock surging over 200% in the past year. Cagney’s return to the public markets with Figure is being closely watched by industry observers.
Since its inception in 2018, Figure has carved out a substantial presence in the blockchain lending sector. The company asserts it is the largest non-bank provider of home equity lines of credit and boasts more than 160 partners utilizing its loan origination system and capital marketplace. Its proprietary Provenance blockchain is used to accelerate approvals for various loan types, including mortgages, refinancing, and personal loans.
In a strategic expansion move, Figure entered the cryptocurrency lending arena earlier this year. It secured a financing arrangement with Victory Park Capital to create what it describes as the first securitized pool of crypto-backed loans. This innovative product enables borrowers to leverage their Bitcoin and Ethereum holdings with loan-to-value ratios as high as 75%.
Cagney has not shied away from ambitious regulatory strategies. In late 2020, Figure applied for a national bank charter that would have allowed it to operate outside conventional FDIC and Federal Reserve oversight. Although the application was eventually withdrawn last year, the move highlighted the company’s willingness to challenge traditional banking frameworks.
Leadership changes have also marked Figure’s recent history. In April 2024, Michael Tannenbaum, former COO of Brex and one-time chief revenue officer at SoFi, was appointed CEO. Around the same time, Cagney initiated a corporate spin-off creating Figure Markets, a standalone digital asset exchange. However, in a surprising reversal, the two entities were merged back together just over a year later.
The company now aims to capitalize on the growing trend of real-world asset tokenization, which involves converting physical or financial assets into digital tokens tradable on blockchain networks. This emerging field has attracted attention from major financial institutions like BlackRock and JPMorgan.
This is not Figure’s first attempt to go public. A previous plan to merge with a SPAC was abandoned due to unfavorable market conditions, including rising interest rates. The company also called off a planned merger with Homebridge Financial Services in 2022, citing regulatory delays.
Figure’s latest IPO filing aligns with a broader resurgence of public listings among crypto and fintech firms. The successful market debut of Circle Internet Group, whose shares climbed over 500% in their first two weeks, has bolstered confidence in the sector. More recently, crypto exchange Bullish saw its stock more than double on its first trading day. Even Gemini, the Winklevoss twins’ exchange, has filed for an IPO despite reporting a net loss of $282.5 million in the first half of 2025.
Backed by investors such as Apollo Global Management and Ribbit Capital, Figure last raised $200 million in 2021 at a valuation of $3.2 billion. Its confidential IPO filing was disclosed several weeks ago, setting the stage for its latest bid to enter the public markets.
(Source: TechCrunch)