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.

AccessTimeIconNov 6, 2020 at 7:19 p.m. UTC
Updated Sep 14, 2021 at 10:28 a.m. UTC

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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