Figure is at the forefront of blockchain innovation with the launch of its On-chain Public Equity Network (OPEN) on the Provenance Blockchain. This pioneering platform disrupts traditional equity markets by enabling companies to list and trade public equity directly on the blockchain.
What is OPEN, and why does it matter?
The OPEN platform diverges from conventional tokenized models by registering securities natively on the blockchain instead of utilizing the Depository Trust and Clearing Corporation (DTCC). By doing so, it eliminates dependency on legacy systems and reduces operational costs for market participants. The first listing on the platform is Figure’s own stock, guaranteeing streamlined exchange with its existing shares on the Nasdaq.
BitGo, a leader in crypto custody solutions, and Jump Trading Group, a market-making powerhouse, are instrumental in ensuring secure operations and market liquidity for the system. According to Mike Cagney, Executive Chairman of Figure, “OPEN reinvents equity trading by offering transformational benefits over centralized models. This innovation incentivizes companies to adopt the platform and drives investor demand.”
Advanced Features for Seamless Trading
The platform operates through Figure’s Alternative Trading System (ATS) with a continuous limit order book, enabling efficient 24/7 trading during market hours. It also introduces a decentralized finance (DeFi) protocol called Democratized Prime. This revolutionary feature removes intermediaries, allowing investors to borrow against their holdings or generate returns through stock lending.
Moreover, portfolio margining across asset classes, including cryptocurrency, is enabled. This flexibility ensures higher efficiency in asset collateralization and simplifies liquidity management for shareholders. Notably, OPEN slashes the DTCC’s capital requirements, improving accessibility and reducing costs all around.
Technical Leadership Backed by Blockchain Expertise
Figure has already originated over $20 billion in blockchain-based loans. Building on this robust track record, the company seeks to redefine how public equities are issued and traded. Through transparency and decentralization, OPEN allows market participants to self-custody and settle securities directly, bypassing custodial brokers.
“We see growing momentum toward more transparent, blockchain-native market structures,” said Mike Belshe, CEO of BitGo. He hailed OPEN’s offering as the “next evolution of digital asset markets.” With strong backing from industry players and enthusiastic interest from blockchain-native firms, OPEN is positioned for success.
Looking Ahead: The Future of Public Equity
Figure’s OPEN platform is not just a technological innovation; it’s a gateway for democratizing equity markets. By removing traditional inefficiencies and empowering both companies and investors, Figure is charting a new course for capital markets.
Are you a blockchain investor or looking to explore decentralized equity opportunities? Consider exploring BitGo for secure asset custody and trading solutions compatible with Figure’s OPEN platform.
