Figure Launches OPEN: A Blockchain-Based Platform for Issuing and Lending Stocks in 2024
- What Is Figure’s OPEN Platform?
- How Does OPEN Disrupt Traditional Stock Markets?
- Why Are Digital Asset Treasuries (DATs) Interested?
- Figure’s Backstory: From SoFi to Blockchain Pioneer
- What’s Next for OPEN?
- FAQs About Figure’s OPEN Platform
Figure Technologies has unveiled its groundbreaking On-Chain Public Equity Network (OPEN), a blockchain platform enabling companies to issue and trade real equity tokens. By eliminating intermediaries like central depositories and brokers, OPEN aims to revolutionize capital markets. The platform, built on Provenance Blockchain, allows investors to use tokenized stocks as collateral for loans, disrupting traditional prime brokerage roles. Figure plans to be OPEN’s first user, with Digital Asset Treasury firms already expressing interest. Could this be the future of stock trading? Let’s dive in.
What Is Figure’s OPEN Platform?
Figure’s OPEN is a blockchain-based system designed to tokenize real company shares, transforming them into tradable digital assets. Unlike synthetic stocks or placeholders, these tokens represent actual ownership. Built on Provenance Blockchain, OPEN enables direct issuance and trading of equity, bypassing traditional middlemen. Mike Cagney, Figure’s CEO, calls it a "fundamental redesign" of equity markets—one where blockchain data replaces legacy systems. The goal? To cut costs, increase transparency, and empower investors.
How Does OPEN Disrupt Traditional Stock Markets?
OPEN removes centralized intermediaries like depositories, exchanges, and retail brokers. Instead, companies issue shares directly on-chain, which are then traded peer-to-peer on a decentralized platform. Investors can use these tokens as loan collateral—imagine pledging your Tesla shares for crypto-backed financing without a prime broker. Cagney notes that while brokers won’t vanish, their roles will shift toward services like cross-collateralization and niche lending. "We’re stripping out the entire stack," he says. "No more gatekeepers."
Why Are Digital Asset Treasuries (DATs) Interested?
DATs, which hold crypto assets like bitcoin in their treasuries, see OPEN as a solution to their valuation woes. For example, Strategy Inc. (a Bitcoin-focused DAT) saw its shares trade below NAV during October’s market slump. OPEN could let investors buy DAT shares using the underlying crypto (e.g., SOL for a Solana-based DAT), aligning prices with NAV. "With OPEN, shareholders have a crypto wallet that accepts digital assets," explains Cagney. "This speeds up arbitrage and closes discounts."
Figure’s Backstory: From SoFi to Blockchain Pioneer
Founded in 2018 by ex-SoFi CEO Mike Cagney, Figure initially focused on blockchain-based mortgages. Its September IPO raised $787.5 million, funding ventures like OPEN. Cagney’s vision? To merge traditional finance with blockchain efficiency. "Wall Street runs on 50-year-old tech," he quips. "We’re upgrading it to real-time settlement."
What’s Next for OPEN?
Figure plans to onboard its own stock first, followed by DATs and other issuers. Regulatory clarity remains a hurdle, but Cagney is optimistic: "The SEC knows blockchain isn’t going away." If successful, OPEN could democratize access to equity markets—imagine startups tokenizing shares on day one. "This isn’t just about cutting fees," says a BTCC analyst. "It’s about rebuilding markets for the digital age."
FAQs About Figure’s OPEN Platform
How does OPEN differ from traditional stock exchanges?
OPEN eliminates centralized intermediaries, allowing direct issuance and peer-to-peer trading of tokenized stocks on a blockchain.
Can investors use OPEN tokens for loans?
Yes! Tokenized shares can serve as collateral for crypto-backed loans, reducing reliance on prime brokers.
Which companies are likely to adopt OPEN first?
Digital Asset Treasuries (DATs) like Strategy Inc., which hold crypto, are early adopters due to OPEN’s NAV-arbitrage benefits.
