Figure Launches On-Chain Equity Network, Challenging Traditional Capital Markets

Event summary

  • Figure has launched the On-Chain Public Equity Network (OPEN) on the Provenance blockchain, allowing companies to list equity natively.
  • OPEN utilizes Figure’s Alternative Trading System (ATS) for limit order book trading and Democratized Prime for decentralized borrowing/lending.
  • Figure plans to be the first issuer on OPEN, with a public registration statement filed in November 2025 for a secondary equity offering.
  • The network aims to reduce costs and disintermediate traditional prime brokers, leveraging blockchain for self-custody and settlement.
  • Figure has originated over $20 billion in loans on public blockchain and has secured a commitment for the next on-chain issuance on OPEN.

The big picture

Figure's OPEN represents a direct challenge to the established infrastructure of equity capital markets, aiming to reduce costs and increase accessibility through blockchain technology. This move aligns with the broader trend of tokenizing real-world assets and leveraging DeFi protocols for financial innovation, but faces the significant hurdle of displacing entrenched incumbents and navigating regulatory uncertainty. The $20 billion in loans already originated demonstrates Figure's ability to execute on blockchain-based financial solutions, but scaling this to the equity market will require substantial adoption and market acceptance.

What we're watching

Adoption Rate
The success of OPEN hinges on attracting both listing companies and investors, and the pace of adoption will determine its long-term viability as an alternative to traditional equity markets.
Regulatory Scrutiny
As OPEN introduces novel financial instruments and trading mechanisms, regulatory bodies will likely increase scrutiny, potentially impacting the network's operational flexibility and growth trajectory.
Custodial Services
While OPEN promotes self-custody, the reliance on BitGo for qualified custodial services for some shareholders highlights a potential point of centralization and a factor influencing broader adoption.

Related topics

Capital Markets