Breaking New Ground: Figure’s Innovative Blockchain Stock Offering
On November 17, 2025, Figure Technology Solutions, Inc. (NASDAQ: FIGR) made waves in the financial sector by announcing a groundbreaking move in the blockchain space. Following their successful traditional finance (TradFi) Initial Public Offering (IPO), Figure revealed its intention to offer a unique class of equity known as Series A Blockchain Common Stock. This innovative approach is set to redefine how equity securities can be issued, traded, and managed in a decentralized manner.
What Is Blockchain Stock?
Figure’s Series A Blockchain Common Stock will function as a blockchain-native class of equity securities—essentially, shares that exist entirely on the blockchain. Unlike traditional stocks, which are managed by centralized entities like the Depository Trust & Clearing Corporation (DTCC), these shares will be issued directly on the Provenance Blockchain. This is significant because it eliminates the reliance on intermediate custodians and clearinghouses, paving the way for a decentralized exchange environment.
The Mechanics Behind Blockchain Stock
The Blockchain Stock will be structured as a one-for-one convertible security into Figure’s Class A Common Stock. This means that holders can easily convert their blockchain stock into traditional shares without unnecessary complications. Furthermore, these securities will be traded on Figure’s own alternative trading system (ATS), which is designed to enhance security and efficiency. By utilizing a self-custody model, users will have greater control over their assets, allowing them to trade flexibly through their blockchain wallets.
Democratized Prime: A Decentralized Finance Solution
Integral to this offering is the Democratized Prime protocol, which enables blockchain stock holders to lend and borrow against their assets in a decentralized finance (DeFi) environment. This functionality presents a departure from traditional finance, where prime brokers served as intermediaries. With Democratized Prime, users can lend their stocks transparently, capturing potential economic benefits that could arise from high lending rates—particularly when stocks are "on special."
Key Advantages of Figure’s Blockchain Stock
Figure’s assurance that this offering will be non-dilutive to existing shareholders marks a distinct advantage over traditional methods. Existing investors will be able to sell Class A Common Stock to underwriters while Figure simultaneously secures shares in treasury, preparing for future conversions and exchanges. This structure is expected to yield multiple benefits:
- Efficiency: The blockchain infrastructure promises significant structural cost advantages compared to conventional public equity frameworks.
- Transparency: With a focus on lending and trading, the blockchain environment circumvents the opaque practices that often plague traditional equity markets.
- Extended Trading Hours: Unlike traditional stock exchanges limited to specific hours, Figure’s blockchain stock will trade around the clock, 365 days a year.
- Innovative Settlement Processes: Utilizing stablecoins for settlement further modernizes the transaction process, enabling bids and trades to occur swiftly and efficiently.
Industry Firsts and Future Prospects
This proposed offering is not just about introducing blockchain stocks but is also about setting industry standards. Notably, it includes:
- First-of-its-Kind Public Equity Security Issuance: The Blockchain Stock is positioned to become the first blockchain-native public equity security with its own CUSIP.
- Decentralized Custody and Settlement: Removing the need for conventional custodians creates a more streamlined, user-friendly environment.
- Cross-Asset Collateralization: The offering allows for innovative cross-collateralization via the Democratized Prime protocol, enhancing liquidity and operational flexibility.
- On-Chain Governance: Shareholders will be empowered to vote directly, leveraging blockchain for trustworthy record-keeping.
Expert Insights
Mike Cagney, Executive Chairman and Co-Founder of Figure, remarked on this transformative moment for capital markets by stating, "This is a new capital markets infrastructure moment for efficiency and risk management – a huge leap forward from the legacy securities market infrastructure." Michael Tannenbaum, the CEO of Figure, added that this offering showcases how blockchain can enhance capital market efficiency and broaden the array of collateralized options available to shareholders.
Upcoming Webcast
To further discuss this groundbreaking offering, Figure has scheduled a webcast and conference call for November 18, 2025, at 4:15 p.m. Eastern Time. It will feature insights from key executives, including Mike Cagney and Michael Tannenbaum, offering investors and industry stakeholders an opportunity to engage directly with the vision behind this innovative initiative.
With this announcement, Figure Technology Solutions is not only shaping the future of securities trading but also providing a framework for the financial industry to evolve into a more efficient, transparent, and user-friendly landscape.
