The firm built and spun out to affiliated website Provenance.io, a blockchain protocol to fundamentally transform how financial products are originated and transacted.
Figure’s mission is to build and promote innovative financial products and solutions on blockchain that eliminate rent seeking, illiquidity and other inefficiencies present in current financial markets. Figure created Provenance, Inc. and currently provides technical, business development and other services to the Provenance administrator through a shared services agreement, though over time, the administrator will take these responsibilities on itself. Long-term Figure intends to be a qualified custodian and exchange operator (via an Automated Trading System exempted from or pursuant to registration with the Securities and Exchange Commission) on Provenance.
Figure currently offers an innovative home equity loan product that is originated, financed, serviced, sold and securitized exclusively on Provenance. Figure recently launched a sale/lease-back alternative to a reverse mortgage that also exclusively uses Provenance for custody and administration.
The initial use case for Provenance is demonstrating how the blockchain can eliminate fees and inefficiencies in the loan origination, servicing and securitization markets. In 2018, Figure began generating home equity loans and subsequently selling them to financial buyers on blockchain through Provenance– an industry first.
Provenance blockchain’s immutable ledger, registry and securitization significantly cut costs, reduce fees, eliminate rent seeking and improve liquidity. While initially focused on the loan and asset-backed securitization ecosystem, Provenance has application across debt, equity, remittance and payment markets.
The company was co-founded by Mike Cagney, the founder and former CEO of SoFi, along with a team of accomplished executives, including co-founder June Ou from SoFi, PeerStreet, Lending Home, State Farm, Franklin Templeton, NYSE and other leading firms. Figure advisors include former SEC Chairman, Arthur Levitt, former FDIC Chairwoman Sheila Bair, former Digital Asset CEO Blythe Masters, Global Atlantic CIO Anup Agarwal and Andy Sandler, founder of Buckley Sandler.