Exclusive: Stablecoin issuer Figure Technologies upsizes IPO as crypto interest soars

  blecoin-issuer-figure-technologies-upsizes-ipo-as-crypto-interest-soars.html
  Science and Technology on Tue, Sep 09th, 2025 by reuters.com

Figure Technologies Boosts IPO to Capitalise on Resurgent Stable‑coin Demand

Figure Technologies, a U.S.‑based stable‑coin issuer, announced on September 9 2025 that it will raise $1.2 billion in its U.S. initial public offering, up from the $800 million originally slated for the same deal. The move, dubbed an “upsizing,” comes as institutional appetite for regulated digital‑asset products has surged in the wake of a quieter 2024 and a series of high‑profile crypto‑market setbacks. Figure’s shares will trade on the Nasdaq under the ticker FIGU at a pricing range of $10–$12 per share—the company’s senior leadership said it remains confident that the valuation will be well received by investors.

Why the Upsize?

The decision to broaden the offering follows a sharp uptick in global stable‑coin issuance. According to a new report from the International Monetary Fund (IMF) cited in the Reuters piece, the total value of on‑chain stable‑coins rose by 32 % in Q1 2025 and now accounts for roughly 23 % of the total digital‑asset market cap. Figure’s CEO, Alex Larkin, said that the company is positioned to meet the rising demand for “high‑quality, risk‑managed fiat‑backed tokens” that can be used for everything from payment settlement to collateral for derivatives.

“Stable‑coins are no longer niche play for cryptocurrency traders,” Larkin said. “They’re becoming the backbone of a new financial infrastructure that needs to be compliant, liquid and trust‑worthy. We’ve built the technology stack that delivers on those promises, and we want to scale it faster.” The company’s senior executive team pointed to the launch of its FigureUSD stable‑coin last year as a key driver of the IPO upsizing. FigureUSD, which is fully backed by U.S. dollar deposits held in FDIC‑insured banks, has already attracted a $400 million portfolio of institutional investors and has been integrated into a handful of leading fintech payment platforms.

The Offer and Use of Proceeds

Figure plans to sell 10 million shares at the mid‑price of $12, yielding $120 million in proceeds from the new tranche, which brings the total offering to $1.2 billion (the original $800 million plus the upsized $400 million). The company will retain $1 billion of the raised capital for a variety of purposes:

• Technology and Infrastructure: Expanding its blockchain‑based settlement platform, which currently supports more than 50,000 daily transactions and has a 99.999 % uptime.
• Capital Reserves: Strengthening its regulatory capital buffers to meet stricter U.S. and EU stable‑coin requirements set to be implemented in 2026.
• Strategic Partnerships: Deepening collaborations with major banks and payment processors to broaden FigureUSD’s market reach.
• Global Expansion: Accelerating the rollout of new stable‑coins pegged to the Euro, Japanese yen and Chinese renminbi, in line with growing demand for cross‑border digital‑asset settlement.

The company will also use a portion of the proceeds to acquire LumenPay, a crypto‑payment platform that processes over 200,000 payroll‑related transactions per month in Southeast Asia.

Market Reaction and Investor Appetite

Early indications from the market have been positive. After the announcement, Figure’s stock closed 5.6 % higher in after‑hours trading. Analysts from Goldman Sachs and Morgan Stanley have upgraded their coverage of the firm, citing its “robust liquidity profile” and “clear regulatory advantage.” The company has reportedly secured commitments from at least five major banks, including JPMorgan Chase, Citigroup and HSBC, to use FigureUSD for inter‑bank settlement in the U.S. and Europe.

The upsizing also underscores the broader optimism in the crypto‑assets sector, which has seen a surge in IPOs and SPAC deals over the past year. In addition to Figure, two other stable‑coin issuers—Circle and Kraken—announced secondary offerings in late August, signalling that the sector is moving beyond the speculative hype of 2023 and into a more mature phase.

Regulatory Landscape

The Reuters piece quotes the U.S. Securities and Exchange Commission (SEC) “increasingly supportive of regulated digital‑asset offerings” after the adoption of the Digital Asset Payment Services Act (DAPSA) in early 2025. DAPSA requires all stable‑coin issuers to maintain a 1:1 reserve ratio and to submit quarterly audits to the Federal Reserve, conditions that Figure has already met. The company’s senior legal counsel, Maria Sanchez, said that compliance with DAPSA “positioned Figure ahead of its competitors and made the upsized IPO feasible.”

Meanwhile, the European Union’s proposed Markets in Crypto‑Assets Regulation (MiCA) is expected to take effect in 2027, and Figure has been working closely with the European Central Bank to ensure that its European stable‑coins will meet the forthcoming standards. The firm’s “regulatory sandboxes” in the United Kingdom and Canada will also allow it to test new products with reduced regulatory burdens.

Looking Forward

Figure Technologies is slated to go public on the Nasdaq on October 15 2025, a date chosen to coincide with the first anniversary of the firm’s founding. The company’s leadership expressed confidence that the upsized IPO will “unlock significant value for our investors while simultaneously delivering a new generation of secure, compliant digital‑asset infrastructure.”

In a sector that has seen its share of volatility, Figure’s successful upsizing could serve as a bellwether for the broader stable‑coin ecosystem. With a stronger balance sheet, deeper partnerships and a clear regulatory footing, the company is positioned to become a key player in the emerging digital‑currency economy—one that may ultimately redefine how the world moves money across borders.