Investing in the Future: How Figure and Sixth Street Are Changing the Game!

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So, here we are, folks. Sixth Street, a private equity firm that could probably buy a small country with its $100 billion in assets, has decided to throw a cool $200 million at Figure Technology Solutions, a blockchain-based lending platform. Because, you know, why not? 💸

In a press release that I can only assume was written while sipping artisanal coffee, Figure and Sixth Street announced this monumental investment on February 27. They’ve formed a joint venture, which sounds suspiciously like a corporate marriage, where Sixth Street’s Asset-Based Finance division will invest $200 million in equity into Figure. This funding is supposed to make Figure Connect, their private credit lending division, as robust as a bodybuilder on steroids. 💪

According to Sixth Street, this partnership will magically inject over $2 billion of liquidity into the non-agency mortgage market through Figure. I mean, who doesn’t want to be part of a liquidity party? Meanwhile, Figure Technology is planning to scale its operations, which I assume means they’ll be hiring more people to explain blockchain to confused investors. 🤔

“This joint venture between Figure and Sixth Street puts Figure Connect on a trajectory that is ultimately intended to lower costs for lenders and borrowers, similar to how borrowing costs were lowered with the introduction of TBAs in the agency mortgage space. It validates Figure Connect as the largest, most liquid, blockchain-based capital market,” said Todd Stevens, chief capital officer at Figure. Sounds fancy, right? But let’s be real, it’s just a lot of jargon to make us feel better about our financial decisions.

Launched in June 2024, the Figure Connect platform is like the Swiss Army knife of lending, utilizing blockchain technology to offer benefits such as market risk hedging and sales automation. It operates on the Provenance Blockchain, which is not a fancy restaurant but rather the backbone of their loan onboarding process. 🍽️

As a leading originator of real-world assets (whatever that means), the Provenance Blockchain allows Figure’s partners to access price discovery through on-chain loan pool bidding. In December 2023, over 40% of Figure’s transaction volume occurred on the blockchain. That’s right, folks, they’re doing more business on the blockchain than I do on my grocery list. 🛒

Thanks to their partnership with Sixth Street, Figure will tap into additional liquidity, which sounds like a euphemism for “we’re going to make a lot of money.” They’ll also gain access to an “always-on” programmatic bid for their assets, which I can only assume means they’ll be bidding on things like “who can explain blockchain to Grandma first.”

The joint venture will provide liquidity to Figure’s users, with Figure’s loans set for securitization through this collaboration. So, if you’re looking for a way to make your money work harder than you do, this might just be it. Or, you know, you could just stick to your piggy bank. 🐷

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2025-02-27 22:27