Ex-SoFI CEO's Startup Closes $1 Billion Credit Line on a Blockchain
Summary
Figure Technologies, a fintech startup founded by former SoFi CEO Mike Cagney, has closed a $1 billion “uncommitted” line of credit on a blockchain. As part of the deal, Jefferies may periodically lend to Figure under a variable funding note, which is secured by Figure’s home equity lines. The platform can support “the entire end-to-end financing of loans, from origination to funding to servicing to financing,” said Cagney, adding: Brian McGrath, head of the securitized markets group at Jefferies, commented on using the blockchain: If the prospective securitization deal closes, it will become the first asset-backed security transaction with loans originated on a blockchain platform, said WSFS’ senior vice president and director of corporate trust, Kristin Moore. Figure Technologies is backed by notable investors, having raised $65 million in a Series B round from Morgan Creek and others earlier this year. Founded last year, Figure launched its home equity loan product in October and it utilizes the Provenance blockchain.