Bernstein Says Figure Is Emerging as a Core Player in Blockchain-Based Lending

Bernstein said fintech firm Figure Technology Solutions has carved out a distinct position in the market for blockchain-based assets.

Cointelegraph reported on May 17 that Bernstein analysts wrote in a recent report that Figure is rapidly evolving from a fintech lending platform into a blockchain-based capital-markets infrastructure company.

Figure reported first-quarter results on May 11 that beat market estimates for both revenue and EBITDA.

The company is developing a business that turns real-world credit assets, including home equity lines of credit, or HELOCs, into blockchain-based assets to improve trading and funding efficiency.

The report said Figure's stock could eventually be structured to reflect blockchain lending volumes in real time. Based on current on-chain data, second-quarter volume also has a strong chance of reaching a record high.

Bernstein also said Figure is aiming to build a blockchain-based financial ecosystem that uses not only loans but also a range of real-world assets, including equities, as collateral.

Separately, Bernstein projected that the tokenized credit market could expand to as much as $4 trillion over the long term. That would include mortgages, auto loans and small-business loans. The market is currently worth about $5.1 billion and remains at an early stage.