Bernstein said Figure Technology Solutions’ shares have risen nearly 10% over the past month, but the stock still appears to be undervalued as the company pivots beyond its roots as a fintech lender.
In a research note on Tuesday, the firm reiterated its “outperform” rating on FIGR (FIGR) and maintained its previous outlook, with a price target of $67, implying approximately 67% upside from current levels.
Figure Technology Solutions (FIGR) Ltd. sauce: Yahoo Finance
Bernstein’s paper focuses on Figure’s transition from a home equity line of credit (HELOC) originator to a broader platform spanning blockchain infrastructure and AI-driven credit markets.
A key part of that change is tokenization. In this case, we convert the loan into a tradable on-chain asset that can be settled in real time. Bernstein estimates the addressable market for tokenized credit to be around $4 trillion, positioning Figure to take advantage of a much larger opportunity than traditional HELOC financing.
The note also noted strong momentum. Loans amounted to $1.34 billion in April, an increase of 108% year-on-year and the second consecutive month above $1 billion. Bernstein expects growth to continue, with total lending expected to rise from $8.4 billion in 2025 to $16.5 billion by 2027.
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Tokenized credit markets have the potential to raise funds from a wide range of sources
Bernstein’s estimated $4 trillion addressable market refers to the total amount of annual credit originations across multiple loan categories that could eventually move on-chain as tokenized assets.
This includes lending such as mortgages, auto loans, home equity lines of credit, and small business loans, areas where Figure is expanding beyond its core business.
Tokenized credit market. sauce: RWA.xyz
To be sure, tokenized credits remain a small part of the broader real-world asset (RWA) market. But industry data shows the sector is now worth about $5.5 billion, highlighting the gap between today’s adoption and the long-term growth opportunities outlined by Bernstein.
Other projects are already experimenting with bringing credits on-chain. Centrifuge has expanded its decentralized finance platform to include tokenized credit and U.S. Treasury products on a new blockchain network, with the aim of combining institutional-grade assets with DeFi liquidity.
Through its Hastra ecosystem, Figure is expanding into areas such as auto loans, where tokenized credit products are designed to connect to decentralized finance and broader blockchain markets.
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