Figure, Web3 Lending Platform, Files for Nasdaq IPO After Profit Turnaround

Figure Technology Solutions, a prominent Web3 lending platform, has formally initiated the process for an initial public offering (IPO) on Nasdaq under the ticker FIGR, signaling a significant move for a blockchain-centric financial entity into public markets. This action underscores the growing convergence of traditional finance with the burgeoning digital asset economy, as innovative firms like Figure seek to scale and institutionalize their operations.

• Figure Technology Solutions has commenced its initial public offering process on Nasdaq under the ticker FIGR.
• The company reported a net profit of $29.1 million on revenues of $190.6 million for the recent six-month period, marking a significant financial turnaround.
• Founded in 2018, Figure initially focused on real estate-backed lending and has since expanded to include cryptocurrency-backed loans.
• Under CEO Michael Tannenbaum, the company launched Figure Markets, its proprietary digital asset exchange.
• The IPO, orchestrated by Goldman Sachs, Jefferies, and Bank of America, targets a public valuation between $5 billion and $10 billion.
• The U.S. Securities and Exchange Commission (SEC) recently approved YLDS, an interest-bearing stablecoin offered by Figure Markets.

Financial Performance and Growth Trajectory

The company’s latest financial disclosures reveal a notable turnaround, reflecting robust growth in its core operations. For the six months preceding the filing, Figure reported a net profit of $29.1 million on revenues totaling $190.6 million. This marks a substantial improvement from the prior year’s comparable period, which saw a net loss of $15.6 million against revenues of $156 million, demonstrating the company’s path to profitability.

Company Genesis and Strategic Expansion

Founded in 2018 by Mike Cagney, a co-creator of SoFi Technologies, Figure initially specialized in real estate-backed lending. It has since evolved to include loans secured by cryptocurrency, financing over $16 billion in various loan products to date. Under the leadership of CEO Michael Tannenbaum, appointed in 2024, the company has also launched Figure Markets, its proprietary digital asset exchange, broadening its engagement across the Web3 financial landscape. The company views blockchain as a foundational technology applicable across all asset classes, with aspirations to be a leader in a “Magnificent Seven” equivalent within the Web3 sector, mirroring the impact of leading tech firms in the Web2 era.

Technological Integration and Client Profile

Figure leverages advanced technology in its operational framework, incorporating artificial intelligence platforms such as OpenAI and Google Gemini for loan assessment processes. This technological integration supports its lending services, which cater to a clientele with strong credit profiles, evidenced by an average FICO score of 753 for its HELOC clients and 740 for its proprietary Figure products.

IPO Details and Investor Engagement

The IPO, with Goldman Sachs, Jefferies, and Bank of America serving as lead organizers, aims to tap into significant investor interest. While Figure was valued at $3.2 billion during a 2021 funding round, media reports suggest the company is targeting a public valuation between $5 billion and $10 billion. Figure has already engaged in preliminary discussions with potential anchor investors, including financial giants such as BlackRock, SoftBank, and Tiger Global, indicating strong institutional interest in its market debut.

Regulatory Approvals and Market Diversification

The company’s foray into public markets is further contextualized by its engagement with regulatory bodies. Notably, the U.S. Securities and Exchange Commission (SEC) recently approved YLDS, an interest-bearing stablecoin offered by Figure Markets. This regulatory endorsement highlights Figure’s efforts to innovate within established frameworks and diversify its product offerings in the evolving digital asset ecosystem.