Summary of Figure Technology Solutions Fireside Chat Company Overview - **Company**: Figure Technology Solutions - **Ticker**: NasdaqGS:FIGR - **Date of Call**: October 23, 2025 Key Points Industry and Technology - **Blockchain Utilization**: Figure utilizes blockchain technology to create a single source of truth for asset ownership and transactions, addressing issues seen in traditional systems like Tricolor [2][6][7] - **Loan Origination Process**: Loans are originated through a proprietary system that registers them on the Provenance Blockchain, ensuring that all loan characteristics are stored securely and instantly [4][5] Core Technology Features - **DART System**: The Digital Asset Registry and Transfer (DART) system operates similarly to MERS but provides real-time updates directly from the blockchain, enhancing accuracy and reducing fraud risk [10][11] - **Figure Portfolio Manager**: This tool allows clients to view and manage their asset rights, ensuring that all transactions are reflected on the blockchain, thus eliminating discrepancies [8][16] - **eVault**: All loan documents are stored in an eVault, reducing the risk of errors associated with traditional document transfer methods [9] Operational Efficiency - **Lien Perfection**: DART's method of lien perfection eliminates the need for traditional title insurance by confirming clean titles upfront and tracking ownership through blockchain [23][24] - **Stablecoin Integration**: The introduction of Yields, a stablecoin backed by short-term treasuries, enhances transparency and operational efficiency in loan servicing and fund management [19][21][22] Market Position and Future Outlook - **Market Leadership**: Figure claims a leading position in real-world assets with over $18 billion in assets and $65 billion in transactions, indicating robust growth and market traction [26] - **Interoperability Challenges**: While acknowledging the proliferation of blockchains, Figure believes that public blockchains will prevail, and interoperability will improve over time through technological advancements [25][27][28] Risk Management - **Collateral Verification**: The technology allows for easier collateral verification and auditing, which has become increasingly important post-Tricolor incident [15][16] - **Preventing Double Pledging**: The blockchain's structure prevents double pledging of assets, enhancing security and trust in transactions [7][20] Conclusion - Figure Technology Solutions is positioned to disrupt traditional capital markets through its innovative use of blockchain technology, operational efficiencies, and a strong market presence, while addressing interoperability and risk management challenges in the evolving financial landscape [12][26][28]

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]