"Corporate lending company" is here, Figure submitted an IPO application, and the founder was once the "P2P veteran" SoFi CEO

Source: Wall Street News

Figure Technology Solutions Inc., a lending company based on blockchain technology, has officially filed for an IPO with the U.S. Securities and Exchange Commission, joining the wave of cryptocurrency-related companies flocking to go public.

On August 19, according to reports, documents released by the U.S. Securities and Exchange Commission on Monday showed that Figure achieved a net profit of $29.1 million and revenue of $190.6 million in the six months ended June 30. This performance is significantly better than the net loss of $15.6 million and revenue of $156 million in the same period last year.

This performance turnaround reflects the gradual maturity of the company's business model and the improvement of market acceptance. The company had secretly submitted its IPO application earlier this month, and the official public application marks the acceleration of its listing process. Goldman Sachs Group, Jefferies Financial Group and Bank of America will act as the lead underwriters for this IPO.

Analysts pointed out that Figure's listing move reflects the continuous penetration of cryptocurrency-related companies into traditional capital markets and also marks the further commercial application of blockchain technology in the field of traditional financial services.

Equal emphasis on business scale and customer quality

IPO filing documents show that Figure has facilitated more than $16 billion in lending business on the blockchain, demonstrating a quite good business scale.

In terms of customer quality, the weighted average FICO credit score of customers with HELOC loans under partner brands initiated or purchased by Figure in 2024 was 753, while the average score of customers with Figure-branded loans was 740. These data indicate that the customer groups served by the company have good credit status.

At the technical application level, Figure is using artificial intelligence technology to optimize business processes. The company uses OpenAI's technology to assist in evaluating loan applications and has deployed a chatbot driven by Gemini, a subsidiary of Google's parent company Alphabet, on its website.

Figure's investors include well-known institutions such as Apollo Global Management Inc., 10T Holdings LLC and Ribbit Capital. The participation of these investors provides the company with financial support and industry endorsement.

After the completion of the IPO, the company will change its name from the current FT Intermediate Inc. to Figure Technology Solutions.

Analysts pointed out that Figure's IPO application marks an important milestone in the commercial application of blockchain technology in the field of traditional financial services, providing investors with an opportunity to directly participate in this emerging field.

A shift from SoFi to blockchain lending

Figure was co-founded by Mike Cagney in 2018. Cagney was a member of the founding team of the online lending platform SoFi Technologies Inc. and served as CEO until he left in 2018. This background has brought Figure a profound fintech gene.

The company appointed Michael Tannenbaum as the new CEO in 2024, while Cagney continues to play an important role in the company. According to the application documents, after the completion of the IPO, Cagney is expected to still control the majority of the voting rights of Figure.

Figure's core business is to develop blockchain technology to facilitate lending business. The company initially focused on home equity line of credit (HELOC) products, and its business scope has now expanded to areas such as cryptocurrency mortgage loans and digital asset exchanges.

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