Blockchain-Based Lender Figure Technologies Applies for US National Bank Charter

If granted, the charter would replace the blockchain-based lender's hodgepodge of state licenses with a single nationwide regulator.

By Danny Nelson

Nov 6, 2020 at 7:19 p.m. UTC

Updated Sep 14, 2021 at 10:28 a.m. UTC

Cagney-Mike — Figure Technologies CEO Mike Cagney

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Figure Technologies has applied for a national bank charter that would simplify compliance and cut costs for the blockchain-based consumer lending startup.

Former SoFi executive Mike Cagney’s fintech company is seeking the Office of the Comptroller of the Currency’s approval to offer its home equity loans and financing services across the U.S.
Currently, Figure has 96 licenses from 49 states, and CEO Cagney says that without the national charter it could end up with 200 licenses by next year. Being regulated as a national bank would replace that expensive hodgepodge with a single overseer.
Figure's Provenance platform is the tech unicorn's claim to fame. The company says the blockchain platform is far more efficient at processing loans than traditional mechanisms.
In March, Figure conducted on-chain every step of a $150 million home equity loan securitization.
SoFi, Cagney's previous company, was approved for a national bank charter by the OCC last month. It was the online lender's second attempt; the fintech tried unsuccessfully when Cagney still ran it a few years ago.

UPDATE (Nov. 6, 20:20 UTC): Added links and background about CEO's last venture.

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