Figure: Home Equity on the Blockchain

Season 1 Episode 16
  • Host

    Zach DeWitt

  • Guests

    Mike Cagney


  • Date

    November 20, 2018

  • Duration

    37 minutes

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Mike Cagney, co-founder and CEO of Figure, is applying blockchain technology to traditional financial services in compelling new ways.

Listen to learn how Figure and its new native blockchain Provenance are changing the way consumers access home equity products, and what exciting things are in store for the future of the financial services industry.

Faster and Cheaper Home Equity Products with Figure

Figure is an equity release business, offering an alternative to a traditional HELOC (home equity line of credit).

With Figure, you can have a home equity line of credit in less than five minutes and be funded in less than five days, which is much faster than the four months it takes that process in the traditional market today.

Figure is launching two products, one being a home equity line of credit and the other an alternative to a reverse mortgage called a buy-rent-back, and both products are being originated native on blockchain.

Provenance, a New Native Blockchain

What’s unique about Figure is that it operates on its own native chain. Provenance is a standalone blockchain, and the token native to Provenance is called Hash.

The Hash token will receive a pro rata revenue share of the loans issued and securitized on the blockchain.

Figure is a traditional financial services company that interacts with the Provenance blockchain. From a consumer perspective, you won’t see the blockchain, it’s abstracted to you, but over time you receive the benefit of a lower cost because of the improvement in technology.

Unlocking $100 Billion of Opportunity

The primary use cases for this today are faster and cheaper loan origination, but by eliminating the intermediation of the trustee, the custody, and the administrator functions that have existed historically, the team at Figure believe the blockchain has the potential to unlock $100 billion of opportunity across fixed income, equity, and commodities.

According to Mike, there is “a tremendous opportunity to really transform, in a way that we haven’t seen in over fifty years, how the financial ecosystem works with blockchain technology.”

Key takeaways:

  • Figure is a financial services company that will offer faster and cheaper home equity products to consumers;
  • Figure will abstract a way to use the blockchain technology to the consumer, but will integrate with a new native blockchain called Provenance;
  • Offering faster and cheaper loans is a practical use case for blockchain technology that is going after a $100 billion plus market;
  • Mike is one of the smartest minds in financial services, and it is exciting to see him adopt blockchain technology with the Provenance blockchain.

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