This past May, Figure Technologies, closed on $1 billion in asset-based financing custodied on the Provenance Blockchain, Inc. (PBI) – a ledger technology Figure built in house. Figure Technologies is SoFi founder Mike Cagney’s latest Fintech venture.
Provenance is a protocol created to originate, finance, and sell its HELOC loans to banks, asset managers and credit funds.
Recently, Figure Technologies closed on a $20 million Reg D security token offering (STO) – once again utilizing Provenance, its in house blockchain.
The security token on Provenance, named Hash, is the underlying equity of the blockchain.
Hash is designed to serve two purposes, according to the company. First, it provides a means to distribute fees paid into Provenance, and, second, it provides a governance voting structure for PBI.
There are 100 billion Hash tokens, and Hash can neither be created or destroyed.
Both transactions were supported and advised by Dechert LLP.
PBI is the administrator for the Provenance.io blockchain. According to a release, the Reg D private placement included broad participation from both blockchain and traditional technology investors. Proceeds will be used to grow the Provenance ecosystem.
Financial services partner at Dechert, Timothy Spangler, said that successful completion of PBIs private placement of Hash is an important step forward for digital assets that “raised many novel legal and regulatory issues.”
“The offering also demonstrates the steady progress blockchain technology is making towards eventually reshaping all financial products and financial transactions.”
The digitization of securities, and digital assets in general, is widely viewed as being the future of securities. While this sector of Fintech is in its infancy, many issuers are reviewing the future potential of leveraging distributed ledger technology to better manage both traditional and esoteric securities.
Figure raised $65 million in series B equity funding back in February of this year. At that time, Figure’s total equity funding stood at $120 million thus Figure has a significant war-chest to execute on its vision.
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