Figure Technology Solutions (FIGR), a blockchain company led by former SoFi CEO Mike Cagney, on Thursday will debut a new tokenized class of stock that will cut out traditional intermediaries and trade entirely on blockchain rails, the company told CoinDesk.
The equity token, called FGRD, will be available on Figure’s On-Chain Public Equity Network (OPEN) and will be issued, traded, and settled without relying on the traditional payment and custody systems that underpin much of Wall Street.
Instead, FGRD transactions will be recorded and finalized directly on the blockchain, allowing for faster execution and programmable compliance, the company said.
Investors can access their assets through the Figure Markets app and self-custody wallet integrated into the network. Investors can also use their equity tokens for lending and borrowing through Figure’s decentralized finance protocol Democratized Prime.
Figure operates a blockchain-native capital markets platform that connects loan origination, financing, and secondary transactions. The company has originated more than $22 billion in home equity loans and provides tools for digital asset custody, tokenization, and on-chain yield products. Its infrastructure is used by banks, credit unions, and fintechs to bring traditional assets onto public blockchains.
Tokenized stocks (digital versions of traditional stocks traded on blockchain rails) have recently gained attention for their potential to reduce payment risk, increase transparency, and increase market access. Most are backed by off-chain assets and rely on intermediaries to reflect real-world ownership. FGRD differs in that it is issued natively on-chain and represents actual stocks rather than derivatives or proxies.
“Public equity is still operating on the basis of how markets worked decades ago, and it no longer makes sense,” said Mike Cagney, Figure’s executive chairman.
“By issuing FGRD natively on-chain, we are re-architecting the core infrastructure of capital markets to be real-time, transparent, and programmable while removing a layer of intermediary that increases cost, risk, and friction,” he added.
Figure’s tokenized stock debut comes during the company’s secondary public offering, which was raised to $150 million. Venture firm Pantera Capital participated in the transaction. The company also announced that it will repurchase $10 million of common stock from existing shareholders.
Figure went public in September, and its stock erased last month’s gains as crypto prices fell.
