Core Insights - The Tricolor bankruptcy highlights significant issues in the auto lending industry, particularly related to data integrity and asset ownership reporting [1][2] - Figure's blockchain-based system offers a solution to prevent issues like double pledging by ensuring real-time verification of transactions [3][4] Industry Issues - Tricolor's bankruptcy was attributed to a data integrity problem rather than a liquidity issue, revealing the reliance on an outdated "honor system" in finance [1][6] - The disconnect between transaction execution and asset ownership reporting can lead to severe consequences, as seen in the Tricolor case [2] Company Solutions - Figure's ecosystem utilizes the Provenance Blockchain to represent loans as tokens, ensuring that all transactions are verified on-chain, eliminating the risk of double pledging [3][5] - The DART system automatically updates lien holders and applies a cryptographic mechanism to prevent unauthorized loan transactions, making audits significantly faster compared to traditional methods [5] Technological Advantages - Figure's system records and verifies transactions in real time, providing transparency and immutability, contrasting with traditional systems that rely on self-reporting [4][6] - The shift to blockchain-based infrastructure is positioned as essential for the future of capital markets, allowing institutions to avoid pitfalls like those experienced by Tricolor [6]