Transaction Marks First Institutional Sale of Consumer Crypto-Backed Loans
Figure Technology Solutions (“Figure”), a technology platform building the blockchain-based capital markets of the future, has entered into a financing agreement with Victory Park Capital (“VPC”), a leading global alternative investment firm specializing in private credit. The transaction includes the sale of Figure’s first – and the industry’s first – pool of Crypto-Backed Loans. This milestone accelerates Figure’s Crypto-Backed Loan business, which enables asset owners to borrow against Bitcoin and Ethereum holdings, to achieve scale.
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“Victory Park Capital is an early mover in financing innovative fintech businesses, and we’re excited to partner with an institutional asset manager that shares our vision,” said Todd Stevens, Chief Capital Officer of Figure. “We’re applying the template we pioneered with our blockchain-powered mortgage product to add a second product at the intersection of cryptocurrency and traditional finance.”
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Figure operates blockchain-native marketplaces for Real World Assets, like mortgage and consumer finance, as well as non-real-world assets such as cryptocurrencies. Figure uses Provenance Blockchain, an L1 public blockchain, for crypto loan origination and monitoring. Building off Figure’s success in the mortgage space, asset owners take advantage of the flexibility of Figure’s offering – which include LTVs up to 75% and longer-term financing – to enjoy liquidity while maintaining their long exposure.
“By offering its customers innovative products, Figure is challenging both the status quo of traditional finance and less flexible crypto lending solutions, while charting a new course for decentralized finance,” said Tom Welch, Partner at VPC. “We have seen immediate demand for the Crypto-Backed Loan product and believe strongly in the company’s highly experienced management team and underlying proprietary technology. We are excited to support the Figure team as they expand their suite of lending solutions.”
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Throughout the past year, Figure has been expanding Figure Connect, a blockchain-based marketplace that connects loan originators and buyers, ultimately creating the first highly liquid private capital marketplace for loans. With this new transaction, Figure adds crypto-backed loans to its Connect Marketplace.
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Source: businesswire
