Figure Obtains Regulatory Green Light For Alternative Trading System

Figure Securities Inc., a subsidiary of Figure Technologies Inc., has become a FINRA-approved broker-dealer in addition to a U.S. Securities and Exchange Commission (SEC) registered Alternative Trading System (ATS) for digital securities held on the Provenance Blockchain, according to a Wednesday (May 12) announcement emailed to PYMNTS.

An ATS serves as a place to connect those purchasing securities with those selling them. The system usually works on the tasks that an exchange typically handles. Nearly 20 percent of securities transactions take place on these systems as of 2018, according to the announcement.

Figure’s ATS will enable the blockchain-based Adnales cap table management offering to provide secondary liquidity to non-public firms. It will also let Figure’s blockchain-based digital fund services offering to give fund managers the capacity to provide secondary trading functionality directly to their fund limited partners (LPs).

Moreover, the ATS will enable asset issuers to make security tokens on Provenance, Figure’s blockchain, and trade them in an “efficient, liquid and bi-lateral” fashion with “zero settlement risk,” according to the announcement.

Provenance is the “leading production blockchain” for the financial services space, according to the announcement, which notes that more than 180 members presently harness Provenance for financial transactions throughout the world.

Figure harnesses Provenance for loan origination, financing and servicing in addition to private fund services.

“Being approved as a broker-dealer and being able to operate our ATS is a transformational event for our company that will have significant impact across the financial services sector,” Figure CEO and Cofounder Mike Cagney said in the announcement. “The ability to execute trades of securities across our technology platform will enable significant capabilities across our financial services client roster.”

As previously reported, Figure Technologies has worked with J.P. Morgan and completed a $100 million financing facility to assist with conforming and jumbo mortgages. In addition, Figure Technologies recently branched out from lending into payments.