Blockchain Lender Figure Secures $200 Million Capital Infusion from Sixth Street
Figure Technology Solutions, a lending platform that utilizes blockchain, has obtained a $200 million capital injection from Sixth Street, a private equity company that oversees more than $100 billion in holdings.
The capital infusion, which was publicized in a press statement on February 27, will see the two businesses establishing a joint venture. Sixth Street’s asset financing division will contribute $200 million to Figure, thereby strengthening the platform’s private credit lending arm, Figure Connect, by enhancing its loan origination capacities.
Sixth Street projects that the joint venture will direct over $2 billion in funding liquidity into the non-agency mortgage market through Figure. Figure Technology plans to utilize the capital infusion to broaden its operations.
As stated by Figure’s Chief Capital Officer, Todd Stevens, the partnership with Sixth Street will enable Figure Connect to decrease expenses for both lenders and borrowers, in a manner akin to how the introduction of TBA in the agency mortgage sector reduced borrowing expenses. He also mentioned that it confirms Figure Connect as the largest and most liquid blockchain-based capital market.
Launched in June 2024, the Figure Connect platform utilizes blockchain technology to provide advantages such as market risk hedging and sales automation. The network operates on the Provenance Blockchain, which Figure uses to onboard all loans.
As a significant originator of real-world assets, the Provenance Blockchain allows Figure’s partners to gain access to price discovery through on-chain loan pool bidding. By December 2023, more than 40% of Figure’s volume was transacted on the blockchain.
Through its collaboration with Sixth Street, Figure will obtain supplementary funding liquidity and access to programmatic, “always-on” bidding for its assets.
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Image users will get entry to solvency via a mutual enterprise. This partnership will permit Figure’s credits to be converted into securities, starting fresh paths for investing and monetary adaptability.
