Transaction Overview
On July 17, 2025, Figure Technology Solutions (“Figure”) announced a definitive agreement to merge with Figure Markets. The combined company will operate under the Figure Technology Solutions name. The merger brings together Figure’s established consumer lending and securitization platform with Figure Markets’ crypto exchange. Financial terms of the deal have not been publicly disclosed.
Target: Figure Markets
Figure Markets is a digital asset exchange launched in 2024 as a spin-off from Figure Technologies. At launch, the company raised $60 million in a Series A round led by Jump Crypto, Pantera Capital, and Lightspeed Faction. Figure Markets’ vision is to build a single platform for trading a wide range of blockchain-native assets. The company operates a crypto exchange, a blockchain-based securities marketplace, offers crypto-backed lending, and issues a yield-bearing stablecoin (YLDS)—all running on the Provenance blockchain.
Figure Markets’ competitors span both traditional crypto exchanges and emerging digital securities platforms. These include crypto trading firms like Coinbase and Kraken, as well as tokenized securities venues such as Securitize and tZERO.
Buyer: Figure Technology Solutions
Figure Technology Solutions, founded in 2018 by Mike Cagney (former CEO of SoFi), brings lending and capital markets onto blockchain rails. The company’s core business, often referred to as Figure Connect, is a consumer credit and loan marketplace that originates and tokenizes assets, predominantly home equity lines of credit (HELOCs), mortgages, and other consumer loans, on the public Provenance Blockchain. More than 175 partner lenders use Figure’s platform to produce standardized, blockchain-recorded loan assets, which are then sold and traded in a deep secondary marketplace.
Since its inception, Figure has funded over $16 billion in loans, making it the largest non-bank originator of HELOCs in the U.S. and capturing a growing share of the $35 trillion U.S. home equity market. The company connects loan originators with institutional buyers through a highly liquid, tokenized private loan market. Its technology enables near-instant loan approval and efficient securitization.
Through its subsidiaries, Figure also offers consumer-facing lending products, including HELOCs, mortgage refinancing, and crypto-backed loans, delivered through a fully digital process.
In 2024, Figure Technology generated $339 million in adjusted net revenue, reflecting more than 60% year-over-year growth, and achieved Adjusted EBITDA margins exceeding 30%.
The company’s last major financing was a Series D in September 2021, raising $200 million at a $3.2 billion post-money valuation. That round was led by 10T Holdings and Morgan Creek Digital Assets. Other major investors include Temerity Capital Partners, Baseline Ventures, DCM Ventures, and RPM Ventures. While Figure initially planned to go public in November 2023, the IPO was subsequently canceled.
Key competitors include 1X, Amount, Percent, Hometap, and Liquid Mortgage, as well as traditional HELOC lenders such as SoFi, Rocket Mortgage, LoanDepot, and Better.com.
Transaction Parameters
The agreement received unanimous board approval and is expected to close in Q3 2025, pending customary shareholder and regulatory approvals. Following the close, Michael Tannenbaum will remain CEO and Mike Cagney will serve as Executive Chairman, unifying the investor bases and positioning the firm for a potential future public listing.
Comparable previous transactions include: Swyftx | Caleb & Brown (M&A Alert), Robinhood | WonderFi (M&A Alert), Ripple | Hidden Road (M&A Alert), Coinbase | Deribit (M&A Alert), Securitize | Pacific Stock Transfer.
Strategic Rationale
The merger will create a single, end-to-end platform capable of originating consumer loans, tokenizing them on the Provenance Blockchain, and trading those assets on Figure’s marketplace. It cements Figure’s leadership in digital assets while combining engineering and compliance talent to accelerate new product development.
Bringing both businesses under one roof also unifies Figure’s extensive U.S. lending licenses with Figure Markets’ SEC-registered digital asset framework and offshore exchange structure, strengthening regulatory coverage and simplifying oversight.
The timing enables Figure to capitalize on surging institutional demand for tokenized assets, positioning the combined firm for global expansion and a potential public listing as market sentiment toward crypto continues to improve.
Architect Partners’ Observations
This merger marks a reversal of the March 2024 spin-off of Figure Markets from Figure Technology Solutions. At the time, separating the two businesses helped insulate Figure Technology from the negative stigma surrounding crypto in the aftermath of the FTX collapse.
Despite the separation, the two entities have always shared the same founder and a unified vision for digital assets, specifically that securities will rapidly transition to digital form through tokenization and become mainstream. Figure Technology’s HELOC offering has already demonstrated the value of this model in practice.
Figure is widely regarded as the leading innovator in tokenizing real-world assets, applying the core innovations of crypto to unlock access to the $35 trillion U.S. home equity market. While tokenized dollars in the form of stablecoins have captured most of the headlines, tokenizing securities and building the supporting infrastructure may prove to be an equally significant or even greater opportunity.
Sources
Figure Press Release, Figure Markets Newsroom, Figure Markets Press Release, CB Insights, Linkedin, Housing Wire, Axios