Figure’s Blockchain Marketplace Tops $1 Billion Weekly Loan Applications After Record Q2

Blockchain-native capital marketplace Figure Technology Solutions saw its Consumer Loan Marketplace volume leap 132% to $4.3 billion in the second quarter as both prospects and investors saw the benefits of this platform for capital, CEO Michael Tannenbaum said Thursday (Aug. 13) during an earnings call.

Figure Connect, the company’s blockchain-based marketplace for private credit, accounted for $2.8 billion, or 65%, of the Consumer Loan Marketplace volume, according to a Thursday press release.

The number of origination partners, including mortgage banks, depositories, servicers and FinTechs, grew by 102 during the second quarter to reach a total of 489, per the release.

“Overall, our flywheel is spinning faster, and our blockchain-based infrastructure and marketplace advantages are compounding,” Tannenbaum said during the call.

Tannenbaum said that prospects “are hearing about the benefits of our disruptive capital marketplace and our liquidity that is soon approaching what they get from the likes of Fannie Mae.”

On the other side of Figure’s marketplace, Tannenbaum said: “Investors continue to join the platform and appreciate our strong credit quality, the transparency and speed of our investor reporting, and the reduced third-party diligence costs characteristic of our platform.”

Looking ahead, Figure expects its Consumer Loan Marketplace volume to be between $4.8 billion and $5.2 billion during the current quarter. The midpoint of that outlook would equal 102% year-over-year growth, according to an earnings presentation released Thursday.

During the call, Tannenbaum said that the second quarter was Figure’s strongest-ever quarter and that “we have seen continued strength in Q3, with application volumes on our platform surpassing $1 billion per week for the first time in early July.”

Figure announced in June that it entered into an agreement to acquire Kiavi, an artificial intelligence-powered lending platform for residential real estate investors. Figure said at the time in a press release that the planned transaction would add over $7 billion in new annual first-lien volume to Figure Connect and more than $100 million monthly to Figure’s Democratized Prime blockchain-native warehouse marketplace.

During Thursday’s call, Tannenbaum said: “We have started to receive key regulatory approvals for the transaction and anticipate closing by the end of this year.”