Figure's IPO on Sept 10,2025 and $4.13B valuation target

Figure Technologies' IPO on September 10, 2025, is a significant event in fintech and blockchain lending, aiming for a $4.13 billion valuation. The company plans to raise up to $526 million by selling over 26 million shares at $18–$20 each. This move highlights investor interest in blockchain's role in enhancing operational efficiency, regulatory compliance, and profitability amid a broader fintech IPO surge.

Figure Technologies' Blockchain-Driven Model

• The company’s core innovation is its use of the Provenance blockchain, which cuts the home equity loan process from the industry average of 42 days to only 10 days.

• In the first half of 2025, Figure reported $190–191 million in revenue (up 22% year-over-year) and turned a $29 million profit—reversing a $13 million loss from the same period in 2024.

• Figure has originated $16 billion in home equity loans and processed $50 billion in transactions using its blockchain-based lending ecosystem.

Strategic IPO Timing in the Fintech Boom

• The IPO arrives as other crypto and fintech firms like Circle and Bullish have launched successful public offerings, signaling maturing regulatory frameworks and renewed investor confidence in blockchain finance models.

• Figure's profitability and regulatory compliance demonstrate that blockchain-based lending can be financially sustainable, not just speculative.

• The company joins the Nasdaq under the ticker FIGR, with lead underwriters including Goldman Sachs, Jefferies, and BofA Securities.

Implications for Investors

• Figure's IPO signals a potential entry point for those seeking exposure to the next-generation fintech sector—especially blockchain-integrated financial infrastructure.

• Its price-to-revenue multiple (about 22x for 2025 H1) is a premium over traditional lenders but aligns with other high-growth fintechs, reflecting optimism in blockchain's expansion to broader asset classes.

• The IPO is being watched as a potential blueprint: Figure’s scale, compliance, and profitability could encourage more blockchain startups to pursue public listings, possibly fueling further innovation and market expansion.

Challenges and Outlook

• Risks remain from regulatory uncertainty around tokenized assets and competition from both traditional banks and other fintechs.

• Figure's advantage lies in its first-mover status and track record in profitable, scalable blockchain lending.

In summary, Figure Technologies’ IPO not only represents a significant capital raise but also sets a precedent in the "blockchain-driven lending" space, offering investors a strategic opportunity in a rapidly evolving fintech landscape.

Figure Technologies' Impact on Alternative Lending

Figure Technologies' upcoming IPO, featuring its blockchain-driven lending model, is a key indicator for the alternative business lending industry. Its outcome will signal important trends for the future of financial services infrastructure, requiring immediate attention and adaptation from alternative business lenders.

Radical Efficiency and Speed are the New Standard, Not a Luxury

Figure’s core proposition is its ability to radically cut home equity loan processing times from an industry average of 42 days to a mere 10 days by leveraging its proprietary Provenance blockchain. This isn't just an incremental improvement; it's a fundamental re-engineering that alternative lenders must internalize.

• For alternative lenders, this demonstrates that speed and efficiency, enabled by blockchain and AI, are no longer optional differentiators but foundational expectations. The market is no longer tolerating legacy-driven delays. The ability to underwrite, verify collateral, and disburse funds rapidly through smart contracts, as Figure does, directly translates to superior customer experience and operational cost savings. Alternative lenders, often priding themselves on speed compared to traditional banks, now face a higher bar.

• The technology's standardization and automation also reduce costs by "hundreds of dollars per loan" compared to traditional securitization and manual processes. This significant cost reduction directly impacts the bottom line and allows for more competitive pricing or greater margins, crucial for sustainable growth in the often-thin-margin alternative lending space. Alternative lenders must identify areas within their own loan lifecycles ripe for similar automation.

• Figure further enhances lending speed with AI, powered by OpenAI's GPT and Google Gemini, calling it a "game-changing evolution". This signals that a comprehensive, integrated technology stack — combining blockchain for trust and transparency with AI for intelligent processing — is the true path to unmatched efficiency and lightning-fast transactions. Relying on piecemeal digital solutions will not suffice; a holistic approach is required to stay competitive.

Institutional Validation of Blockchain-Driven Finance is Here

Figure Technologies' IPO, targeting a $4.13 billion valuation and aiming to raise $526 million, is a clear sign that institutional investors are increasingly embracing blockchain's integration into mainstream finance. This is a pivotal moment that signals a shift in capital allocation.

• The market is moving beyond speculative crypto plays towards tangible use cases that demonstrate profitability and regulatory compliance. Figure's positive net income in H1 2025 ($29.1 million) stands in stark contrast to previous losses, showcasing a viable business model. This is a blueprint: alternative lenders leveraging blockchain must demonstrate robust fundamentals and a clear path to profitability to attract significant capital, not just innovative tech.

• The success of other blockchain-linked fintech IPOs, such as Circle's $1.1 billion NYSE debut with shares surging 168% on day one, further normalizes investor appetite for this sector. This momentum suggests that the "IPO window" for well-structured digital asset platforms is wide open. Alternative lenders utilizing similar technologies should consider this a prime opportunity to seek public market validation and access a broader pool of capital.

• Figure's strategic partnerships with "Wall Street heavyweights like Goldman Sachs and Bank of America" as lead underwriters indicate a mainstream acceptance and confidence in blockchain's ability to tokenize real assets and automate workflows. This means the traditional finance world is actively participating in, and validating, the blockchain revolution, making it easier for alternative lenders with similar foundations to attract institutional backing and capital market participation.

The Expansion of "Real-World Assets" (RWAs) on Blockchain is Inevitable

While Figure is making significant inroads in home equity lending, its vision extends to creating a highly liquid private capital marketplace and expanding into other asset classes like commercial real estate and small business loans. This signals a fundamental shift in how diverse loan portfolios can be managed and funded.

• Alternative lenders, who often deal with specialized or niche asset classes not traditionally favored by large banks, are uniquely positioned to tokenize these "real-world assets" onto a blockchain. This could unlock unprecedented liquidity and accessibility for their loan portfolios, similar to how Figure aims to do so for private credit. Imagine a more liquid market for equipment loans, invoice financing, or specialized inventory finance.

• Figure Connect, designed as a marketplace for private credit loans, provides essential infrastructure like warehouse lines, hedging, and automated loan sales on a public, transparent blockchain. This model can serve as an example for alternative lenders to scale their businesses by accessing robust capital markets, moving beyond reliance on traditional institutional funding partners who may be less agile. A programmatic bid for assets, as enabled by the Sixth Street joint venture, offers "always on" liquidity.

• The diversification of Figure's revenue streams through tokenized money market funds (like YDLS via Figure Markets) highlights the potential for alternative lenders to create new, innovative financial products beyond traditional loans. This could include fractionalized debt, tokenized revenue shares, or other structured products that appeal to a wider range of investors seeking exposure to alternative asset classes.

Regulatory Alignment is Paramount for Sustainable Innovation

Figure's proactive strategic alignment with regulatory frameworks, such as the 2025 GENIUS Act, positions it as a compliant innovator in contrast to many DeFi platforms that operate in legal gray areas. For alternative lenders, this provides clear guidance: compliance is not a hurdle to innovation, but its very foundation for long-term success.

• The growing regulatory clarity in the digital asset space, particularly with the passing of legislation like the GENIUS Act and the implementation of frameworks like MiCA in the EU, builds confidence for both startups and investors. Alternative lenders venturing into blockchain must prioritize understanding and integrating evolving regulatory requirements (AML/CFT, consumer protection, data protection, and securities laws) from the outset to avoid future pitfalls and attract institutional partners.

• Figure's profitability and regulatory compliance are explicitly cited as a "blueprint" for other blockchain startups seeking public market validation. This means that a commitment to regulatory excellence is a prerequisite for achieving scale and attracting significant investment, rather than just a cost center. Alternative lenders have an opportunity to demonstrate leadership in this regard.

• Regulators are actively in an "information gathering stage" to understand blockchain technology before adding new rules, highlighting an opportunity for proactive engagement from the industry. Alternative lenders can contribute to this dialogue by showcasing how blockchain enhances transparency, auditability, and security in their lending operations, thereby shaping a more favorable regulatory environment for the entire sector.

_{Sources:
Figure
Pulse of Fintech H1 2025
Figure Technologies' High-Valuation IPO: A New Era for Blockchain Lending
Figure Technology Solutions and Sixth Street Form Joint Venture to Bring Over $2 Billion of Liquidity and Through-The-Cycle Stability to Non-Agency Mortgage Market}

1-Minute Video: Why Smart Alternative Lenders Position Factoring as a Strategic Bridge, Not a Permanent Crutch

🎯 The Three-Year Banking Wall Creates Massive Market Opportunity

Traditional banks demand three years of profitable operating history before extending credit lines, creating a substantial gap in the market. This requirement automatically excludes:

• Startups with strong customer bases but limited operating history

• High-growth companies reinvesting profits back into expansion rather than showing consistent year-over-year profitability

• Businesses recovering from economic disruptions who haven't yet rebuilt three consecutive profitable years

• Seasonal businesses whose profit patterns don't align with traditional banking metrics

🎯 The Cash Flow Paradox Defines Your Target Market

The sweet spot for factoring clients exists when businesses have growing receivables but declining cash reserves for payables. This scenario typically occurs during:

• Rapid customer acquisition phases where new contracts create 30-60 day payment delays

• Seasonal inventory buildups requiring immediate cash outlay before collection cycles complete

• Post-contract award periods when businesses must fulfill large orders before receiving payment

• Market expansion phases where increased operational costs precede revenue realization

🎯 Graduate-Based Success Metrics Differentiate Professional Operators

Measuring success by client graduation rates to traditional banking, rather than lifetime value extraction, creates competitive advantages through:

• Enhanced referral networks as graduated clients recommend services to peers facing similar growth challenges

• Improved industry reputation positioning the lender as growth-focused rather than predatory

• Stronger relationships with traditional banks who view the lender as a pipeline partner rather than permanent competitor

• Higher quality deal flow as word spreads about genuine business development focus versus transactional relationships

🎯 Lifecycle-Based Positioning Addresses Industry Perception Problems

Alternative lenders face persistent stigma when positioned as desperate-times solutions rather than strategic growth tools. Reframing factoring around business lifecycle stages addresses:

• Credit tightening periods when banks reduce lending appetite but businesses maintain strong fundamentals

• Working capital optimization during expansion phases when traditional credit lines lack flexibility

• Cash flow timing mismatches between customer payment terms and operational expense schedules

• Bridge financing needs during ownership transitions, acquisitions, or major contract awards

Listen to Full Podcast

Headlines You Don’t Want to Miss

Home Equity Lender Figure Aims For $4.1 Billion Valuation In IPO

Home equity lender Figure Technologies has filed to go public, targeting a $4.1 billion valuation through its IPO on the Nasdaq as interest in fintech and blockchain-powered lending surges. The company, which reported strong profits and a 22% revenue jump in early 2025, aims to raise over $500 million by offering 26.3 million shares at $18–$20 each.

Blackstone Secured Lending's NAV, Valuation, And Dividend Versus 11 BDC Peers

Blackstone Secured Lending Fund (BXSL) currently reports a NAV of $27.33 per share, a market price of around $29.80 (trading at a 9-15% premium to NAV), and a quarterly dividend of $0.77 per share—yielding about 10-11%. When compared to 11 large BDC peers, BXSL's recent economic returns and yield are slightly above the peer group average, and it stands out for low non-accruals and high first-lien exposure.

Morgan Stanley Direct Lending: No Safety Margin (NYSE:MSDL)

Morgan Stanley Direct Lending (NYSE:MSDL) is experiencing mounting risks, with recent earnings showing thinner dividend coverage and increased non-accruals, raising concerns about its safety margin. Despite an attractive 11%+ dividend yield and focused first lien strategy, analysts warn that credit quality and future dividends are under threat due to fundamental portfolio weaknesses.