Figure Technology Solutions (FIGR), a blockchain company led by former SoFi CEO Mike Cagney, told CoinDesk it will launch a new tokenized stock on Thursday that trades entirely on a blockchain rail, eliminating traditional intermediaries.
The equity token, called FGRD, will be offered on Figure’s on-chain public equity network (OPEN), with the token’s issuance, trading and settlement not relying on the traditional clearing and custody systems that underpin much of Wall Street.
Instead, FGRD transactions are recorded and finalized directly on the blockchain, allowing for faster execution and programmable compliance, the company said.
Investors can access assets through the Figure Markets app and self-custody wallets integrated with the network. Investors can also use their stock tokens to lend and borrow via Figure’s decentralized finance protocol, Democraticized Prime.
Figure operates a blockchain-native capital markets platform that connects loan origination, financing and secondary trading. The company has originated more than $22 billion in home equity loans and provides tools for digital asset custody, tokenization and on-chain yield products. Banks, credit unions, and fintech companies use their infrastructure to bring traditional assets to public blockchains.
Tokenized shares—digital versions of traditional stocks traded on blockchain rails—have recently attracted attention for their potential to reduce settlement risk, increase transparency, and increase market access. Most are backed by off-chain assets and rely on intermediaries to reflect real-world ownership. FGRD is different in that it is issued natively on-chain and represents actual equity rather than a derivative or proxy.
“Public equity still runs on market pipelines that are decades old and simply don’t make sense anymore,” said Mike Cagney, executive chairman of Figure.
“By issuing FGRD on-chain, we are re-architecting the core infrastructure of capital markets to make it real-time, transparent and programmable, while eliminating middle layers that add cost, risk and friction,” he added.
Figure’s tokenized stock debut comes amid the company’s secondary public offering, which was expanded to $150 million. Venture capital firm Pantera Capital participated in the transaction. The company also said it would repurchase $10 million worth of common stock from existing shareholders.
Figure went public in September, and its shares erased gains over the past month as cryptocurrency prices plummeted.