CoinDesk
Figure Technology Solutions is taking direct aim at Fannie Mae and Freddie Mac in the U.S. first-lien mortgage market, using its blockchain rail to underbid the GSEs on cost and speed. Speaking at Consensus Miami, founder Mike Cagney cited origination costs of roughly $1,000 on the Provenance-based platform against about $11,000 through the federally chartered buyers.
The pitch stacks speed on top: HELOC applications approve in 5 minutes and fund in three days, against an industry norm of 30–45 days, with a guaranteed loan buyer built into the platform — effectively cloning Fannie and Freddie's role for originators. The first-lien market is roughly 25× larger than Figure's existing second-lien HELOC book, which runs through 308 partner originators, and the sub-$300,000 segment is the wedge because the GSE fee structure stops working at those loan sizes.
Why it matters
The cost gap is the headline, but the structural shift is the marketplace pivot. Figure's adjusted EBITDA margin moved from 30% to 55% across 2025 as balance-sheet lending gave way to an exchange-style model, and Cagney guided to 80–85% over the next one to two years. Revenue ran $339M in 2024 and $510M in 2025, with sell-side estimates of $650–680M for 2026; March crossed $1B in monthly originations for the first time. The model also moves Figure closer to a DeFi primitive — talks with Consensys' MetaMask would integrate Democratized Prime, the firm's lending protocol against onchain mortgage and auto collateral, with a second listing on Figure's blockchain-native equity venue (OPEN) following the FIGR share listing and a $150M secondary.
Market impact
The bullish case for FIGR rests on the first-lien wedge, the margin guide, and the MetaMask distribution channel. The bearish case is the onchain accounting: DeFiLlama founder 0xngmi has argued the $12B tokenized-RWA headline is not meaningfully visible on Provenance, documenting roughly $5M in BTC and $4M in ETH on Figure's exchange plus $20M in YLDS stablecoin supply, and tracking Figure's TVL closer to $140M. Until that gap narrows, the marketplace thesis — not the RWA optics — is what the equity rerates on.
Frequently asked questions
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What is Figure's pitch against Fannie Mae and Freddie Mac?
Figure is targeting the GSEs in first-lien mortgages using its Provenance blockchain rail, citing origination costs of about $1,000 against roughly $11,000 through the federally chartered buyers — a 91% gap. HELOCs approve in 5 minutes and fund in three days.
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How big is the first-lien mortgage opportunity for Figure?
The first-lien mortgage market is roughly 25× larger than Figure's existing second-lien HELOC business, which runs through 308 partner originators. The sub-$300,000 segment is the initial wedge because the GSE fee structure stops working at those loan sizes.
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What margin path is Figure guiding to?
Figure's adjusted EBITDA margin moved from 30% to 55% across 2025 as it pivoted from balance-sheet lending to a marketplace model. Founder Mike Cagney guided to 80–85% adjusted EBITDA margins over the next one to two years.
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How does the MetaMask integration fit into Figure's strategy?
Figure is in talks with Consensys' MetaMask to integrate Democratized Prime, the firm's DeFi lending protocol for borrowing against onchain mortgage and auto collateral. The deal would extend Figure's distribution into MetaMask's wallet user base.
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Why is Figure's onchain footprint contested?
DeFiLlama founder 0xngmi has argued Figure's claimed $12B in tokenized real-world assets is not meaningfully visible on the Provenance blockchain. Documented onchain balances sit closer to $5M in BTC, $4M in ETH, and $20M in YLDS stablecoin, with TVL around $140M.
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