Key facts
- Figure closed a $300 million securitization deal.
- The securitization is for loans to be traded on the Figure Connect marketplace.
- The securitization is fully prefunded.
- Funding was secured from institutional investors before loans were originated.
- The approach offers originators committed liquidity.
- The approach reduces uncertainty for originators.
Figure has finalized a $300 million securitization deal, a significant move for the blockchain-based lending sector. This securitization is fully prefunded, meaning that capital from institutional investors has been secured before the loans themselves are originated. The loans are intended to be traded on Figure's proprietary marketplace, Figure Connect. This innovative structure offers loan originators a guarantee of committed liquidity, thereby reducing the uncertainty typically associated with the lending and securitization process. By securing funding upfront, originators can proceed with originating loans with greater confidence, knowing that the capital is already allocated. The Figure Connect marketplace is designed to streamline the trading of these securitized assets, leveraging blockchain technology to enhance efficiency and transparency in the secondary loan market.