The combination will enable SMB capital providers to access capital markets to finance their loans and other receivables, the companies said in a Tuesday (May 5) press release.
Credibly will also use two other parts of the Figure ecosystem, including Figure Connect, which is a blockchain-native marketplace that connects originators with investors to facilitate whole loan sales and securitization, and Digital Asset Registry Technology (DART), which is a blockchain-native eNote and lien registry, according to the release.
These offerings will be enabled by a new strategic partnership between Figure, which is a blockchain-native capital marketplace for tokenized assets, and Credibly, which is a working capital company focused on providing access to financing for SMBs. The partnership will become effective during the second quarter, the release said.
“By teaming up with Credibly, we’re doubling down on SMBs, one of our biggest recent growth drivers as well as an area where we see enormous untapped demand, particularly from high-performing FinTechs looking for capital markets rails that match their origination innovation,” Figure CEO Michael Tannenbaum said in the release.
Credibly co-founder and co-CEO Ryan Rosett said in the release: “At Credibly, we’re committed to leveraging the most innovative technology available to expand working capital access, and working with a partner like Figure helps us deliver faster, more accessible funding in real time.”
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For Figure, the partnership marks the second agreement in which a FinTech will use Democratized Prime as a borrower. The first such agreement was with auto FinTech platform Agora Data, per the release.
When announcing that partnership in February, Figure said it would bring externally originated auto loans onto Figure’s marketplace. The company said it expects this offering to bring tens of millions of dollars of auto finance assets to the marketplace within months.
“By integrating with third-party originators, we dramatically expand addressable supply without material costs,” Tannenbaum said at the time. “We effectively turn our marketplace into a capital markets highway, one that can accept assets from multiple on-ramps.”
Meanwhile, Credibly announced in January that it earned a new patent to help it underwrite loans for SMBs. The company said the patent demonstrates its investment in artificial intelligence-driven underwriting and financing technologies for SMBs.
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