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Institutional investors are pinning the first $10 million of this type of RWA funding in the Defi Marketplace as traditional finance continues to adopt decentralized rails.
San Francisco, California (dated) Figure Market today announced the launch of a $20 million on-chain senior loan facility backed by the Figure Home Equity Line (HELOCS). The facility will use the figure market’s democratized Prime Marketplace. This transaction is now available for the first time for digital native real-world assets (RWAs) to be used as decentralized lending protocols and market collateral.
Democratized Prime allocates capital using hourly Dutch auctions. Lenders can set target loan rates, automatically roll the loan, and redeem it for an hour. The first $10 million in funding comes from institutional partners in the figure market with a funding rate of 8%. Figure Market members can participate in the offer or set up a higher or lower loan fee. Using Dutch auctions, all lenders receive the highest mortgage money borrowed regardless of the offer rate.
“Democratized Prime is making it possible to win $(1.5) billion on available figure real world assets (RWAS) on the source blockchain,” said Mike Cagney, CEO of Figure Market and Figure Chairman. “Performance Market members can lend to these assets and buy, borrow and use figure loans as collateral for other exchange activities, such as quickly purchasing Bitcoin. The process is truly democratized.
Lenders use Figure’s Digital Asset Registry Technology platform to gain security integrity against collateral. This is the same tool used by Goldman Sachs, Jeffries and others in Figure Lawn. The yields that lenders earn on democratized Prime are added to the enhanced yields that can already be earned by holding figure market SEC registered Stablecoin.
“We’re planning to bring as many loans into democratized Prime as there is demand,” Cagney said. “We want to add over $700 million a month to our blockchain of origin and make extensive use of democratized Prime. We ensure there is always enough RWA for demand.”
Like other Defi Lending protocols, hourly loans are bilateral between borrowers and lenders. Each market has its own automated liquidation method to manage lender risk. If there is not enough liquidity to meet the lender’s reimbursement, the market rate will rise to 30% to attract the borrower’s lever or new capital.
About the figure market
The figure market is democratizing finance through blockchain. The company is building exchanges for everything that is a decentralized custody market, such as crypto, stocks, bonds, credits and more. By providing best-in-class leverage, margin trading and liquidity, Figure Market offers its members a wide range of borrowing options and unique investment opportunities. Decentralized custody exchanges allowed members to manage their assets and data, disrupting legacy brokers, exchanges and lenders. For more information, visit www.figuremarkets.com or its LinkedIn, Telegram, X, and Discord.
About Figure Technology Solutions
Founded in 2018, Figure Technology Solutions (“Figures”) is a blockchain-based technology platform built to increase the efficiency and transparency of financial services. A subsidiary, Fuging Lending LLC, is the largest non-bank provider of the home equity credit line. The software is used to distribute more than $14 billion in home equity. Figure technology is embedded in a wide network of loan originators and capital market buyers, and is used directly by homeowners in 50 states and Washington, DC. As the diagram goes by, homeowners can receive HELOC approval five minutes faster and receive funds in just five days.
Democratized Prime uses Dutch auction methods for borrowers/lenders. There is an inherent risk due to interest rate volatility at auction Dutch auction rates. At the time of acceptance, the loan may be filled with a different or higher interest rate than that provided at the time of your choice. Interest rates are fixed only upon approval of the loan and not upon acceptance of the loan.
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