Why Figure's Blockchain Stock May Redefine Markets — What Investors Must Know

• You can tap a technology that promises to cut transaction costs by up to 90%.
• Figure's shares trade at a 39x earnings multiple, far above traditional fintech peers.
• The company has already tokenized over $15 billion of home‑equity loans on its Provenance blockchain.
• Success hinges on expanding beyond Helocs into broader capital‑market assets.
• Competitors from ICE to Digital Asset are racing to capture the same tokenization wave.

You missed the blockchain wave that could slash your transaction costs overnight.

Figure Technology's Tokenization Strategy Explained

Figure built a proprietary blockchain called Provenance to turn real‑world loans into digital tokens. Each token embeds the loan agreement, title, and lien data, creating an immutable record that can be transferred without re‑verification. The process reduces origination costs from roughly $12,000 per loan to about $1,000, a ten‑fold efficiency gain.

In 2025 the firm reported revenue of at least $505 million, a 50% jump year‑over‑year, with cash operating income of $250 million. Those numbers are driven largely by its home‑equity line of credit (HELOC) platform, which serves as a real‑world test bed for the tokenization model.

Why Figure's Margin Multiples Reflect Sector Dynamics

The market values Figure at roughly 39 times this year’s earnings forecast, dwarfing peers such as SoFi, which trades near 34 × PE. The premium reflects two forces: first, the expectation that tokenized assets will unlock new revenue streams beyond consumer lending; second, the scarcity premium on a firm that has already proven a scalable blockchain solution for $15 billion of loan assets.

Investors are betting that the “blockchain‑as‑infrastructure” narrative will translate into higher‑margin licensing fees, secondary‑market trading commissions, and stablecoin yield spreads.

How Competitors Like Intercontinental Exchange Are Responding

Traditional market operators are not standing still. Intercontinental Exchange (ICE) and Tradeweb are rolling out their own token‑exchange platforms, leveraging more established blockchains such as Canton's. Their advantage lies in existing relationships with banks and a ready‑made compliance framework.

Digital‑asset specialists—Digital Asset Holdings, Securitize, and Superstate—are also courting institutional asset managers. These firms target larger ticket‑size tokenized securities, from corporate bonds to mortgage‑backed securities, aiming to eclipse Figure’s niche focus.

Historical Context: Tokenization Waves Since 2017

The first wave of security token offerings (STOs) in 2017–2018 fizzled because regulators and banks were reluctant to cede custody. The second wave, sparked by stablecoin growth in 2020–2022, saw broader acceptance of tokenized cash equivalents.

Figure’s approach differs by anchoring tokenization to a proven loan product rather than speculative crypto assets. That mirrors the successful transition of mortgage‑backed securities onto electronic platforms in the early 2000s, which ultimately lowered costs and increased liquidity.

Technical Primer: Tokens, Stablecoins, and Settlement

Token – a digital representation of an asset on a blockchain that can be transferred instantly.

Stablecoin – a digital coin pegged to a fiat currency; Figure’s $YLDS yields about 3% and is SEC‑registered.

Instant Settlement – unlike traditional T+2 or T+3 settlement cycles, token transfers settle in seconds, eliminating counterparty risk and reducing capital lock‑up.

Investor Playbook: Bull and Bear Cases for Figure

Bull Case: Figure expands Provenance beyond HELOCs into auto loans, credit‑card receivables, and corporate debt. Licensing fees skyrocket, and the $YLDS stablecoin attracts institutional cash, driving net‑interest margin expansion. The stock could trade above 60 × PE as the market prices a new, high‑margin fintech platform.

Bear Case: Large banks reject Figure’s blockchain as a “non‑core” solution, preferring ICE or Canton's ecosystems. Growth stalls at the $15 billion token pool, and the earnings multiple compresses toward the broader fintech average. A prolonged crypto‑market downturn could also pressure the $YLDS yield, eroding ancillary revenue.

In summary, Figure sits at the intersection of fintech innovation and capital‑market disruption. Whether the firm can translate its HELOC success into a broader tokenization empire will determine if its lofty valuation is justified or a speculative bubble waiting to burst.