Figure Technologies, Inc. (Figure™), a leader in transforming financial services through the power of blockchain technology, today launched the first loan marketplace that powers the turnkey buying and selling of loans on blockchain.
“The Provenance Loan Marketplace is another step in our efforts to support fast, easy liquidity in the loan marketplace using the Provenance blockchain platform,” said Mike Cagney, CEO and Co-Founder of Figure. “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.”
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 Chad Carrigan, Vice President of Whole Loan Acquisition at First National Bank of America. “Figure continues to drive innovation in the financial services industry that is helping investors create new value in liquidity markets.”
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.”
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Loans can be reoffered in part or in whole back into the marketplace, giving buyers liquidity. As with all Figure HELOCs, the loans are recorded and serviced on the Provenance blockchain.
Key advantages of the Provenance Loan Marketplace include:
- 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,” said Bob Kleinert, Managing Director, Capital Markets of Piper Sandler. “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.”
The transactions and loans are protected by unprecedented security protocols. Provenance implements best in class security practices including two factor authentication and digital certificates for identity. All records on Provenance are immutable, providing a complete audit trail for any transaction.
The launch of the Provenance Loan Marketplace is yet another milestone in a series of firsts for Figure and Provenance. 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. Figure has originated, closed and funded more than $1 billion in HELOC, Student Loan Refinance on Provenance, another first for the industry.
The underlying blockchain platform that enables the Loan Marketplace will also be utilized for a variety of asset classes, including private funds. Provenance is revolutionizing how digital assets are issued, accessed and exchanged.
