Figure's Mike Cagney on IPO debut: We're using blockchain to change how capital markets work

Company Overview - Figure Technology, a stable coin issuer, made its public debut on NASDAQ, increasing its IPO offering to over 31 million shares priced at $25 each, above the expected rate [1] - The company has originated over $16 billion in loans and conducted over $55 billion in on-chain transactions since its inception in 2018 [6] Business Model and Technology - Figure utilizes blockchain technology to streamline capital markets by reducing the number of intermediaries involved in transactions, which can represent trillions of dollars in market capitalization [4] - The company started with home equity lines and credit, providing faster and cheaper loan processes through blockchain efficiencies [7] Financial Performance - In the previous year, Figure reported $340 million in revenue and over $100 million in EBITDA, with a growth rate exceeding 66% in the first two quarters of the current year [8] Market Position and Future Plans - The blockchain and crypto space is viewed as massively subscale, presenting opportunities for consolidation and rollup, which Figure aims to leverage as a public company [11] - Future plans include expanding into credit and potentially launching a blockchain-native public equity that trades on decentralized exchanges, enhancing transactional efficiency and liquidity [13][14] Industry Context - The stable coin market is expected to see significant capital movement, with estimates suggesting that trillions of dollars could transition from bank liabilities to stable coins, fundamentally altering banking models [16][18] - A substantial outflow of deposits from banks has been noted, with a potential $2 trillion to $6 trillion leaving, creating a void in private credit financing that blockchain technology could fill [19]