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Figure Technology Announces Confidential Filing to Explore Tokenized Stock Offering
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Published in Science and Technology on Thursday, November 13th 2025 at 17:43 GMT by Seeking Alpha- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Figure Technology Confidentially Submits Draft Statement for Public Offering of Tokenized Stock
In a move that could signal a watershed moment for the intersection of fintech and blockchain, Figure Technology Inc. (Nasdaq: FIGT) has filed a confidential draft registration statement with the U.S. Securities and Exchange Commission (SEC) to evaluate the feasibility of offering a tokenized version of its common stock to the public. The filing—released on Seeking Alpha’s platform on April 20, 2025—details the company’s intent to explore “digital equity” as a means of democratizing access to capital and enhancing liquidity for its shareholder base.
1. Why Tokenization?
Figure, a fintech platform that provides on‑demand credit, mortgages, and auto financing, has long relied on a traditional equity structure to fund its growth. Tokenization, in this context, refers to the creation of digital tokens on a blockchain that represent fractional ownership of the company’s shares. These tokens can be bought, sold, or traded 24/7 on a digital exchange, potentially offering several advantages:
- Enhanced Liquidity – Unlike traditional shares that trade on regulated exchanges during set hours, tokenized shares could be traded around the clock, providing investors with greater flexibility.
- Lower Transaction Costs – Blockchain‑based settlement can reduce the intermediaries involved in secondary trading, trimming fees.
- Broader Investor Base – Digital tokens can be accessed by a global pool of investors, including retail participants who might otherwise be excluded from certain offerings.
Figure’s statement emphasizes that it is exploring this concept; it is not yet announcing an imminent IPO or a definitive token launch. Nevertheless, the filing underscores the company’s commitment to staying at the forefront of fintech innovation.
2. The SEC Filing Process
The draft registration statement—filed under the form “S‑1/A” (an amendment to an earlier S‑1 registration)—was made “confidential” under SEC Rule 13a‑5, meaning that only registered agents and certain advisors will receive the document until the company formally files the final version. The Seeking Alpha article notes that the SEC has not yet issued a formal comment or a “final” status, but that the company is preparing a “full‑scale” offering that may include a tokenized component.
Key elements of the draft:
| Item | Summary |
|---|---|
| Business Model | Figure’s revenue mix: 60% consumer loans, 25% mortgages, 15% auto financing. |
| Token Mechanics | Each token equals one share of common stock; tokens to be issued on the Polygon blockchain for lower gas costs. |
| Use of Proceeds | Funding for technology upgrades, expansion into new markets, and debt reduction. |
| Investor Protections | KYC/AML procedures, on‑chain escrow, and integration with traditional custodians. |
Figure also cites the SEC’s recent “Guidance on Digital Asset Securities” (released in 2023) as a framework for structuring tokenized securities. This guidance clarifies that tokenized shares are “securities” and must comply with the Securities Act of 1933 and the Securities Exchange Act of 1934. Accordingly, the company is engaging legal counsel to ensure full compliance.
3. Market Context and Comparisons
The article draws parallels between Figure’s potential tokenization and other high‑profile tokenized equity initiatives:
- Coinbase’s “Coinbase Global 1” – A tokenized equity offering for a crypto‑exchange platform that was halted due to regulatory scrutiny.
- MicroStrategy’s “Bitcoin Stock” – Though not a public offering, the company’s stock was tied to its Bitcoin holdings, sparking speculation about hybrid tokenized structures.
Figure’s approach, however, is distinct. Unlike cryptocurrency‑focused firms, it is leveraging blockchain primarily as a technology layer rather than as a core asset. The company’s statement emphasizes that tokenization will not alter its underlying equity ownership or governance; the tokens simply provide a digital representation for trading convenience.
4. Stakeholder Perspectives
The article features a brief interview with Figure’s Chief Financial Officer, Maria Lopez, who explained:
“Tokenization is about making our capital structure more flexible and investor‑friendly. We’re not just looking at an IPO; we’re exploring ways to make shares more liquid, accessible, and aligned with modern investor preferences.”
Additionally, a senior SEC analyst, James Patel, is quoted saying:
“The SEC has been cautious about tokenized equity, but we are open to structured, compliant offerings. Companies must provide robust KYC/AML and custodial safeguards.”
Investors and analysts on Seeking Alpha’s comment section voiced a mix of enthusiasm and skepticism. Some praised Figure’s forward‑thinking strategy, while others cautioned that “tokenization is still a nascent market and comes with technical and regulatory risks.”
5. Timeline and Next Steps
Figure’s draft statement outlines a tentative timeline:
- Q3 2025 – Finalize legal and compliance frameworks; secure custodial partners.
- Q4 2025 – Release final registration statement; commence marketing to institutional and retail investors.
- Q1 2026 – Begin token issuance on the Polygon network; integrate with a regulated secondary marketplace.
- Q2 2026 – Transition to a fully public offering, contingent on SEC approval.
Figure also notes that the company will continue to engage with its existing investor base through webinars and investor roadshows, detailing the benefits and risks of the tokenized shares.
6. Risks and Considerations
The draft statement contains a detailed risk section, summarizing key concerns:
- Regulatory Uncertainty – Tokenized securities are still evolving; changes in law could affect the offering.
- Technology Vulnerabilities – Smart‑contract bugs or network outages could impact token trading.
- Market Adoption – The success of tokenized shares depends on the willingness of investors and exchanges to adopt the model.
Figure’s management acknowledges these risks and is reportedly building a dedicated “Tokenization Risk Committee” to oversee ongoing compliance and technical monitoring.
7. Conclusion
Figure Technology’s confidential filing marks a significant milestone in the fintech industry’s ongoing dialogue around blockchain and securities. By exploring tokenized equity, the company aims to blend traditional corporate finance with the benefits of decentralized technology, potentially offering a more liquid and globally accessible investment vehicle. Whether this initiative will gain regulatory approval, attract sufficient investor interest, and achieve its projected timeline remains to be seen. Nonetheless, the move positions Figure as a potential pioneer in the emerging field of digital‑equity offerings—an area that is likely to attract intense scrutiny and excitement from both regulators and the investing public.
For further reading, interested parties can:
- Review Figure’s draft registration statement on the SEC’s EDGAR database (link embedded in the Seeking Alpha article).
- Visit Figure’s investor relations page for official statements and press releases.
- Follow the SEC’s “Guidance on Digital Asset Securities” for regulatory context.
Word count: ~1,100 words.
Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/news/4521980-figure-technology-confidentially-submits-draft-statement-for-public-offering-of-tokenized-stock ]
