Figure Technology Solutions, a startup specializing in blockchain-based home loans and cryptocurrency exchange operations, is preparing for an initial public offering this autumn with ambitions to raise between $5 billion and $10 billion, as stated by co-founder Mike Cagney. This initiative aligns with a broader trend where numerous cryptocurrency firms are seizing opportunities under the White House's increasingly supportive regulatory environment and soaring investor enthusiasm for the sector. Previously, during the Biden administration, the company attempted an IPO but withdrew due to regulatory objections over specific wording in its filings.

Cagney, who established Figure in 2018 after serving as CEO of SoFi, emphasized in a recent interview that the company aims to capitalize on the momentum following stablecoin issuer Circle's successful IPO last month. Circle's shares have skyrocketed eightfold since their June debut. "We are targeting a $10 billion fundraise, and it's abundantly clear that substantial capital is available in the market," Cagney remarked from Figure's San Francisco headquarters.

Preliminary discussions have taken place with potential investors such as BlackRock, SoftBank, and Tiger Global Management, leveraging the buzz around Circle's performance. Financial metrics shared with investors reveal impressive growth: Figure's annualized first-quarter revenue hit $355 million, a 35% year-over-year increase, while EBITDA stood at $121 million. The company's primary revenue stream stems from Home Equity Lines of Credit, which have expanded steadily amid rising home prices and homeowners' reluctance to refinance at higher interest rates, opting instead to tap into their equity for cash.

Figure's proprietary technology harnesses blockchain to centralize loan records in a single database, slashing audit costs and operational expenses. Most loans are now processed through partners like Credit Karma and Guaranteed Rate, driving a 50% surge in loan volume to $5.1 billion last year. Additionally, the firm generates income by securitizing loans and selling them to investors, consistently maintaining credit loss rates at or below 1%. Looking forward, Cagney outlined expansion into prime brokerage services, enabling institutional clients to lend cryptocurrencies and stocks—including Figure's own shares—on its blockchain, alongside new ventures in crypto-backed loans for private credit firms.