Figure IPO: Mike Cagney Returns to Public Markets

Figure Technology Files for Initial Public Offering

Figure Technology, a blockchain-based lending firm established seven years ago, submitted its IPO filing on Monday. The company’s paperwork reveals a 22.4% increase in revenue, reaching $191 million for the six months concluding June 30th. Furthermore, a profit of $29 million was reported for the same timeframe, a significant improvement compared to the $13 million loss recorded the previous year.

Vindication for Co-founder Mike Cagney

This filing presents an opportunity for validation for Mike Cagney, the co-founder of Figure. He previously spearheaded the development of SoFi before departing from the personal finance platform in 2017 due to allegations of sexual harassment. SoFi successfully went public in 2021 through a special purpose acquisition company (SPAC) merger and has experienced substantial growth as a publicly traded entity—its stock value has increased by over 200% in the last year, with a 44% revenue increase in the second quarter of 2025.

A Leading Player in Blockchain Lending

Since its inception in 2018, Figure has become a prominent force in blockchain-based lending. The company asserts having over 160 partners utilizing its loan origination system and capital marketplace. Figure also positions itself as the largest non-bank provider of home equity lines of credit.

Leveraging Blockchain Technology

Founded by Cagney and his wife, June Ou, the company utilizes blockchain technology, specifically its Provenance blockchain, to expedite the approval processes for home equity loans, mortgage refinancing, and both student and personal loans.

Expansion into Cryptocurrency Lending

In May, Figure announced its expansion into the realm of cryptocurrency lending. This involved a financing agreement with Victory Park Capital for what was characterized as the industry’s inaugural securitized pool of crypto-backed loans. This product enables asset holders to secure loans against their Bitcoin and Ethereum holdings, with loan-to-value ratios reaching up to 75%.

The specific details of the agreement with Victory Park Capital were not publicly disclosed.

Past Regulatory Ambitions

Cagney has demonstrated a pattern of pursuing ambitious regulatory strategies. As reported by TechCrunch in late 2020, Figure applied for a U.S. national bank charter during the final days of the first Trump administration. This charter would have allowed the company to accept uninsured deposits exceeding $250,000 from accredited investors, bypassing traditional oversight from the FDIC and Federal Reserve. This approach could have set a precedent for other fintech and retail companies seeking alternative bank charters and offering financial products with reduced oversight, but the application was withdrawn last year amidst broader challenges within the fintech sector.

Leadership and Organizational Shifts

The company has experienced significant changes in leadership and organizational structure. In April 2024, Michael Tannenbaum, formerly the COO of Brex, was appointed as CEO. Tannenbaum had previously collaborated with Cagney as SoFi’s chief revenue officer.

A Reversal of Strategy

In an atypical corporate move, Cagney initiated the spin-off of Figure Markets in early 2024, establishing a separate digital asset exchange for crypto trading, crypto-backed loans, and stablecoins. However, just over a year later, in July, Figure reversed this decision and reintegrated the two entities.

Focus on Real-World Asset Tokenization

The company asserts that this strategy will enable it to capitalize on the substantial and expanding opportunity presented by real-world asset tokenization. This process involves converting traditional assets—such as mortgages, real estate, or loans—into digital tokens that can be traded on blockchain networks. Major financial institutions, including BlackRock and JPMorgan, have recently entered this space.

Previous Attempts at Going Public

It is important to note that this is not Figure’s initial attempt at becoming a publicly traded company. The company had previously planned to list through a merger with a SPAC, Figure Acquisition Corp., but the deal was abandoned due to factors such as rising interest rates and redemption rates. The blank check company was subsequently delisted from the New York Stock Exchange.

Failed Merger with Homebridge

Figure, backed by investors like Apollo Global Management and Ribbit Capital, also failed to finalize a planned merger with mortgage lender Homebridge Financial Services in 2022, citing regulatory delays ten months after the initial announcement.

Timing and Market Trends

The IPO filing was anticipated by industry observers. Figure, having last secured $200 million in funding in 2021 at a $3.2 billion valuation, had announced weeks prior its confidential submission for an IPO. Furthermore, the timing aligns with a growing trend of crypto-related companies pursuing public listings, spurred by the successful debut of Circle Internet Group in June and the Trump administration’s strong support for the cryptocurrency sector and related legislation.

Positive Momentum in the Crypto Market

Circle’s shares experienced a surge of over 500% within the first two weeks of trading. Crypto exchange Bullish has further contributed to this momentum, with its shares more than doubling on its first day of trading last week.

On Friday, Gemini, the crypto exchange founded by the Winklevoss twins, filed for an IPO despite reporting a $282.5 million net loss in the first half of 2025.

Underwriters for the IPO

Goldman Sachs, Jefferies, and BofA Securities are serving as the lead bookrunners for Figure’s IPO. The number of shares offered and the price range have not yet been determined.

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