Mike Cagney, Co-founder and Executive Chairman of Figure Technology Solutions (Nasdaq: FIGR), emphasizes the need to critically evaluate blockchain’s advantages over traditional systems. Rather than vague promises of cost savings or improved liquidity, Cagney highlights tangible benefits through Figure’s On-chain Public Equity Network (OPEN), a blockchain-based platform designed to challenge centralized exchanges like the NYSE.
As explained in an update from Mike Cagney of Figure Technology Solutions, this initiative prioritizes user empowerment and operational efficiency, positioning blockchain as a transformative force in equity markets.
One key edge is enhanced access and control. Unlike conventional exchanges that rely on intermediaries such as brokers and mandatory accounts, OPEN allows individuals to trade directly using compatible crypto wallets.
This enables self-custody of assets and independent settlement through a limit-order book, promoting a wallet-driven financial ecosystem where users retain full authority without needing super-apps or gatekeepers.
Blockchain also introduces flexible collateral options.
Traditional margin trading limits collateral to equities, but OPEN integrates Figure’s DeFi protocol to let users pool diverse digital assets, including cryptocurrencies, for borrowing.
This user-centric approach expands possibilities and reduces barriers in leveraged trading.
Transparency in stock lending stands out as another innovation.
The opaque “locate” process in legacy systems hides true borrower costs and broker fees from lenders.
OPEN addresses this by creating a public order book for loans, directly linking parties for clear, efficient transactions—all managed via wallets.
Finally, settlement efficiency is revolutionized. Conventional processes incur high costs and capital demands due to rules from entities like the DTCC.
OPEN facilitates real-time netting, delivering high trading volumes with end-of-day-like capital savings, streamlining operations without compromising scale.
These insights align with broader blockchain research from global professional services and consulting firms.
KPMG‘s reports underscore blockchain’s role in slashing costs and boosting efficiency in financial services, such as through digital asset trading and storage on distributed ledgers, potentially transforming risk management and compliance.
Accenture highlights traceability and smart contracts for automating processes, enabling faster, more secure payments and settlements while modernizing bank cores with tokenized deposits and programmable money.
PwC emphasizes tokenization’s potential to digitize assets, reducing intermediaries and unlocking value in areas like syndicated loans and intercompany settlements, with global spending on blockchain projected to surge.
EY explores use cases in securitization and payments, where blockchain ensures real-time transparency and automates contracts, enhancing accounting and tax collection by eliminating reconciliation needs.
Currently, blockchain powers crypto-native services, stablecoins, and supply chain tracking. Potential applications include agentic money for autonomous transactions and tokenized real-world assets for illiquid markets.
With partnerships like Figure’s with BitGo for custody and Jump Trading for liquidity, blockchain isn’t just an alternative anymore—it’s clearly poised to redefine global finance.