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Transforming Financial Services Through the Power of Blockchain
Figure Technologies, Inc. Lead by Mike Cagney former CEO of SoFi, is transforming financial services through the power of blockchain technology, with the launch of the first loan marketplace that powers the turnkey buying and selling of loans on the blockchain.
Based on IBM’s Hyperledger Fabric Figure’s blockchain, Provenance (the underlying blockchain platform) is revolutionizing how digital assets are issued, accessed, and exchanged (Provenance Whitepaper). The loans are recorded and serviced on the Provenance blockchain reducing the friction that exists in traditional marketplaces introducing real-time trades.
Best in Class Security, Complete Audit Trail, Cost-Effective.
Provenance implements best in class security practices and all records on Provenance are immutable, providing a complete audit trail for any transaction eliminating the need for “handling companies”.
“It’s a huge step forward in transitioning the buying and selling of loans from the opaque and time consuming over-the-counter process to a low cost, real time settlement and highly efficient marketplace that delivers unparalleled transparency for loan originators, investors and regulators.”
Mike Cagney, CEO and Co-Founder of Figure.
Figure will regularly release pools of Figure HELOCs for Bids-Wanted-in-Competition (BWIC), and add other loan types over time. Figure is already working to onboard additional originators and investors to buy and sell assets in the Provenance Loan Marketplace.
“Building this marketplace on Provenance is going to transform the speed and efficiency of bringing liquidity to the loan sector,” said
“Figure continues to drive innovation in the financial services industry that is helping investors create new value in liquidity markets.”
Chad Carrigan, VP of Whole Loan Acquisition, First Natl. Bank of America.
Banks, credit unions, funds, and other institutional buyers can diligence collateral, review, and sign the loan purchase agreement (LPA) and submit a bid on the marketplace.
“Provenance provided Garnet Capital Advisors with clean, reliable data which enabled us to reach out with confidence to primary market participants,” said Dan Arlotta, Vice President, Garnet Capital Advisors. “Garnet is looking forward to continuing to work with the Provenance Marketplace platform to bring efficiencies to the market.”
Key advantages of the Provenance Loan Marketplace:
- Secondary Market Liquidity
- Real-Time Remittance
- Real-Time Bilateral Settlement
- Comprehensive, Electronic Loan Documentation
- Reduced Custody and Servicing Expense
- Real-Time Asset Performance Information
- Ability to Resell Participation Interests in Loan Pools
“Our financial institution clients are embracing the capability, security, and efficiency of the Provenance Marketplace,”
“It fits seamlessly with our clients’ existing tech stacks and provides real-time access to buyers and sellers of loans with increased transparency and lower friction. We see tremendous opportunity for blockchain to transform markets and are excited to help build out the Provenance Marketplace.”
Bob Kleinert, Man. Dir., Capital Markets of Piper Sandler.
The launch of the Provenance Loan Marketplace is yet another milestone in a series of firsts for Figure and Provenance.
Figure has originated, closed, and funded more than $1 billion in HELOC, Student Loan Refinance on Provenance, another first for the industry.
Earlier this year, Figure completed the first securitization of digital assets ever on blockchain, using the Provenance platform for loan origination, financing, and asset-backed securitization.