In a step forward for real-world asset (RWA) integration in decentralized finance, Figure (Nasdaq: FIGR) has officially introduced Figure Forge. The new service enables the conversion of blockchain-native loans and other RWAs into uniform participation tokens. These tokens are tailored for immediate use in Figure’s Democratized Prime DeFi marketplace, built on the Provenance blockchain.
To ensure smooth trading from day one, Figure is backing a dedicated limit order book with its own capital.
At the same time, fresh lending pools within Democratized Prime will unlock additional yield streams for Hastra, the DeFi protocol that powers the Prime yield token.
The announcement also highlights an important collaboration with fintech firm Agora Data, which becomes the first external partner to leverage Figure Forge. Figure will initially fund and maintain liquidity in the associated tokens.
Yields generated from Agora’s auto-loan portfolios will flow straight to Democratized Prime participants and can also be accessed through Hastra, giving users new ways to earn without leaving the ecosystem.
The real breakthrough lies in solving a long-standing barrier to RWA adoption. DeFi thrives on asset-backed lending, where users post collateral to borrow against it in an overcollateralized manner.
Lenders focus only on liquidity, volatility, and safe loan-to-value ratios rather than individual credit checks.
Yet traditional loans—especially auto loans—are anything but uniform.
They differ by borrower credit scores, loan-to-value levels, and sizes (averaging roughly $42,000).
When market conditions shift and liquidation thresholds are breached, selling a fractional slice of a single large loan becomes nearly impossible on decentralized exchanges.
No liquid whole-loan marketplace exists for most DeFi participants, leaving collateral trapped and inefficient.
Figure Forge cuts through this complexity with a powerful abstraction layer.
It pools comparable loans—those underwritten under identical standards—and mints infinitely divisible participation tokens.
Each token represents a pro-rata claim on the entire pool’s cash flows.
Token holders retain the right to redeem their share for individual loans, fiat, or stablecoins whenever they choose.
The result is fully fungible, liquid collateral that behaves like any other DeFi asset while retaining its underlying yield.
Liquidity remains critical, which is why Figure Forge pairs the tokenization engine with a limit order book featuring committed bids and offers.
This structure draws in both loan originators looking to offload assets when token prices rise and securitization firms eager to buy undervalued tokens, redeem them for loans, and repackage them for traditional capital markets.
Figure’s roots in credit markets and blockchain give it a decisive edge. Accurate, market-reflective pricing of incoming and outgoing loans prevents arbitrage leaks.
The company’s balance sheet provides the seed capital needed to match the scale of DeFi pools, while its existing securitization infrastructure allows it to arbitrage price discrepancies profitably—buying cheap tokens, redeeming for loans, and selling into wholesale markets.
When its own originations produce surplus loans, Figure can feed them into the Forge and sell tokens at premiums.
The Agora partnership serves as a live demonstration for third-party assets.
Figure will run a dedicated auto-loan Forge on Provenance, seeding liquidity and creating high-yield pools that feed both Democratized Prime and Hastra.
Users will soon be able to hold these yields outright or leverage them through Hastra’s ecosystem partners.
Figure plans the expansion of Forge capabilities into receivables, consumer lending, and small-to-medium business loans.
By delivering homogenization and liquidity, Figure Forge is poised to accelerate the movement of traditional credit onto public blockchains—potentially widening yield opportunities for DeFi participants and bridging the gap between Wall Street and web3.