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Author: Paul Veradittakit, Managing Partner at Pantera Capital; Compiled by Shaw Bitchain Vision
summary
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Figure Technologies’ IPO marks a major shift in the blockchain industry to real-world applications, solving practical financial problems such as home equity loans;
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Figure’s success is attributed to its ability to simplify traditional financial processes, such as shortening loan cycles and promoting network effects through regulatory milestones such as its Market Model (Figure Connect) and YLDS;
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Figure’s IPO proves that the true value of blockchain is to enhance existing financial systems, not replace them altogether.
Figure Technologies’ successful listing is a watershed moment for the blockchain industry.We are extremely excited about this and look forward to its impact on the future of finance.
The power of real-world blockchain applications
At Pantera, we have always believed thatThe most transformative application scenarios of blockchain are those using cases that are direct contact and real economy.Figure perfectly interprets this concept.Although the cryptocurrency sector is mostly focused on speculation and financial engineering, Figure is solving practical problems for ordinary Americans who need to acquire property rights.
The data says it all.Figure has completely changed the model of home equity loans, shortening the loan cycle from 30 days to 5 days.They contributed to more than $17 billion in loans and processed more than $50 billion in public blockchain transactions.As the largest non-bank home equity line of credit (HELOC) lender in the United States, they are not just a crypto startup—but a mature financial services company that just happens to be powered by blockchain technology.
Network effects really exist
What excited me the most about the development of Figure is their transformation to the market model.Today, 170 third-party institutions have issued loans through Figure Connect.This network effect is exactly what we pursue in successful blockchain applications—Technology becomes the empowerment layer, making the entire ecosystem more efficient.
Their latest innovation, YLDS, represents another breakthrough: the first profitable stablecoin registered by the U.S. Securities and Exchange Commission (SEC) and can be transferred to the point-to-point.This is not only a technological achievement, but also a milestone in the regulatory field, paving the way for mainstream applications.
How blockchain creates value for Figure
Miracle happened when Figure incorporates poorly liquid assets such as loans and their history into the shared ledger.This transparency enables more reasonable pricing, more complete information flow, and unprecedented asset management control.This is not blockchain for the sake of blockchain, but rather using blockchain to solve the practical inefficiency problems in traditional finance.
Blockchain has crossed the gap
This figure proves that blockchain is being used in a real and pragmatic way every day, representing a true upgrade of our existing financial system.
Consider the following data points:
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Stablecoins are promoting application scenarios such as cross-border payments, internal capital flows and remittances.
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Currently, 10% of the US-Mexico remittances are made through cryptocurrency exchange Bitso, most of which use stablecoins.
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Tokenized versions of stocks and other financial products are usually only available to only 1% of the world’s wealthy people, and are now making it equal access for people around the world.
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Companies like Figure are innovating outdated processes such as loan issuance to reduce friction and costs by using blockchain as an empowerment layer.
Looking to the future
Figure’s IPO is more than a company’s victory—it validates our argument thatThe biggest impact of blockchain comes from improving real-world processes rather than creating competing independent financial systems.
As we continue to support the next generation of entrepreneurs to build transformative blockchain technology, Figure provesThe most valuable crypto companies are often those that make the existing world work better than those who try to completely replace it.
The future of finance is under construction, and real-world applications are being promoted step by step.Figure’s journey from startups to public companies clearly shows us the future.
