Blockchain Mortgage Platform Figure Launches SPAC to Raise $250M

Michael Cagney, the founder of blockchain lending startup Figure Technologies, wants to set up a special purpose acquisition company (SPAC), it announced in a regulatory filing Thursday.

The blank-check firm seeks to raise $250 million, according to the prospectus filed with the U.S. Securities and Exchange Commission (SEC), and will be called Figure Acquisition Corp. I. Bloomberg first published the news.

Figure Technologies issues mortgages and loans, using its own blockchain, called Provenance, to automate portions of the process. It was founded in 2018 and raised $220 million from Ribbit Management, DST Capital, RPM Ventures, Nimble Ventures and Morgan Creek, the prospectus noted.

Cagney would be the chairman of the new company’s board.

Figure is the latest crypto firm setting up a SPAC, which have been used as vehicles to let companies to go public. Digital asset custodian and derivatives provider Bakkt went public through a similar method earlier this year. Other companies like Coinbase have instead chosen to go public through a direct listing.

Figure’s prospectus said it expects “to identify companies that have compelling growth potential” and a combination of various characteristics that it can acquire to go public.

“We expect to differentiate ourselves through our … capacity to leverage proven and scaled blockchain platform which drives operational, technological and marketing improvements to maximize the growth potential of businesses,” the prospectus said.

The prospectus did not say that Figure Technologies itself would go public through the SPAC.

According to SEC documents, Figure filed its form S-1, initially announcing the SPAC, on Feb. 3, with an updated filing going live on Thursday. A draft registration statement was filed in mid-January.

Figure also filed to become a bank last year, applying for a charter through the Office of the Comptroller of the Currency in November, though it’s yet to receive approval.

Figure also created an ad campaign featuring an anthropomorphic “blockchain” in early 2020.



Tagged : / / / / / / /

Figure Blockchain Lending Platform Secures $100m from JP Morgan

Figure Lending has obtained a $100 million loan facility from leading U.S lender, JPMorgan for conforming and jumbo mortgages. The blockchain-powered mortgage platform claims it has secured $1.5 billion of lending facilities via five funding deals, according to a LedgerInsights report on January 15, 2021.

Figure Gets $100 Million From JPMorgan 

Figure Technologies Inc., a startup that functions as a financial technology (fintech) company in both the home equity and blockchain ecosystems, has announced that its subsidiary, Figure Lending has successfully obtained a $100 million loan from JPMorgan bank for its conforming and jumbo mortgages.

Established in 2018, Figure offers home equity access solutions (refinance and home equity lines) to property owners, consumer financial solutions for home improvement, debt consolidation, and retirement.

For the uninitiated, conforming loans are simply conventional loan types that meet the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) purchase standards, as well as a specific loan amount ($484,350 as of 2019). 

On the other hand, jumbo loans are mortgages that exceed the maximum conforming loan amounts ($510,400 in most U.S cities). 

Mortgage Loans on the Blockchain 

Notably, Figure Lending says it has so far secured a massive $1.5 billion of lending facilities through five funding deals, including $1 billion from Jefferies Group in 2019. Jefferies is a New York-based multinational independent investment bank and financial services company.

“With the financing facility now in place, can support the entire end-to-end financing of loans, from origination to funding to serving to financing. It paves the way for the first securitization on-chain, which will demonstrate the massive cost savings, risk reduction, and liquidity benefits blockchain delivers,” declared Figure Technologies CEO, Mike Cagney at the time.

Figure says the entire information pertaining to its mortgages are stored on its Provenance distributed ledger, which is also used to package the debt as mortgage-backed securities. This way, all data remains tamper-proof and secure.

The firm claims its mortgage lending businesses experienced a 100 percent month on month growth in Q4 2020. Buoyed by this success, Figure reportedly applied for a national banking charter with the Office of the Controller of the Currency (OCC) last November, though its application is yet to be approved.

In related news, BTCManager informed last May that the Bank of Russia is developing a digital mortgage system powered by Masterchain, a government-backed blockchain project.

Like BTCMANAGER? Send us a tip!

Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4


Tagged : / / / /
Bitcoin (BTC) $ 27,810.45 2.19%
Ethereum (ETH) $ 1,892.65 2.76%
Litecoin (LTC) $ 91.19 2.04%
Bitcoin Cash (BCH) $ 116.46 2.00%