Figure Technology Solutions’ Strategic Advancements in the Mortgage Sector
Figure Technology Solutions is making strategic advancements in the U.S. mortgage sector, aspiring to compete directly with the government-sponsored entities, Fannie Mae and Freddie Mac, particularly in the realm of first-lien loans. During a presentation at the Consensus Miami conference organized by CoinDesk, CEO Mike Cagney highlighted that the firm’s innovative blockchain platform can effectively reduce the cost of mortgage origination from approximately $11,000—typical within the traditional government-sponsored enterprise pathway—to a mere $1,000.
Targeting the Sub-$300,000 Mortgage Bracket
The company is specifically targeting the sub-$300,000 mortgage bracket, which Cagney noted is often less appealing under the existing pricing framework employed by Fannie Mae and Freddie Mac; fixed fees can disproportionately affect smaller loans. Figure’s platform promises a guaranteed buyer for mortgage loans, akin to the facilitative role played by Fannie and Freddie, thus allowing lenders to process loans more rapidly and avoid lengthy holding periods.
Home Equity Line of Credit (HELOC) Innovations
Moreover, Figure has positioned its home equity line of credit (HELOC) as an industry leader, boasting an application approval time of just five minutes and funding within three days, which starkly contrasts with the conventional timelines spanning 30 to 45 days. According to data from Figure’s operational update in April, the consumer loan marketplace witnessed a significant volume increase to $1.34 billion, reflecting a 12% rise compared to March and a staggering 108% boost from April 2025, indicating that the lending marketplace has flourished ahead of Cagney’s recent mortgage initiatives.
Debate Over Tokenized Asset Valuation
Cagney also mentioned that their HELOC tokens are recognized among the largest cryptocurrency assets on a public blockchain based on market valuation, though this assertion has stirred debate regarding the true nature of assets counted as “onchain.”
DeFiLlama’s founder 0xngmi challenged Figure’s tokenized asset valuation, arguing that a significant portion remains unverifiable by decentralized finance (DeFi) trackers.
Notably, DeFiLlama has recorded Figure’s Total Value Locked (TVL) at a considerably lower figure than what the company claims for its real-world assets.
Broader Strategy and Future Plans
This mortgage venture is part of Figure’s broader strategy of enhancing blockchain-based capital markets, expanding from their launch of OPEN Network designed for on-chain stock issuance, with plans to list their equity there. Additionally, in related news, Animoca Brands, along with Provenance Blockchain Labs, announced their intentions to create NUVA, a marketplace for vaults associated with real-world assets, which will include Figure-backed HELOC products and the YLDS stablecoin.
Transitioning Towards a Marketplace Model
Transitioning towards a marketplace model, Cagney revealed that contribution margins rose significantly, climbing from 30% to 55% in 2025, with ambitious targets set for 80% to 85% over the next one to two years. The firm is currently engaged in discussions with Consensys’ MetaMask to implement ‘Democratized Prime’, a decentralized finance lending protocol aimed at facilitating on-chain mortgages and auto collateral.
Growing Momentum for Crypto-Collateralized Mortgage Products
This move towards crypto-collateralized mortgage products is gaining momentum, as evidenced by a recent report revealing that Coinbase and Better Home & Finance are developing mortgage offerings linked to loans backed by Fannie Mae, allowing select buyers to use cryptocurrency as collateral instead of liquidating their assets before closing.
