How to Invest in Figure's $526M Blockchain IPO: Guide
Figure Technology Solutions is making headlines with its ambitious $526 million IPO, targeting a valuation of up to $4.3 billion. As one of the most significant blockchain-powered lending companies to go public, Figure represents a unique investment opportunity in the intersection of traditional finance and distributed ledger technology. Founded by former SoFi CEO Mike Cagney, the company has revolutionized home equity lending using blockchain infrastructure, processing over $16 billion in loans and achieving profitability with $29 million in net income during the first half of 2025.
This comprehensive guide will walk you through the entire process of analyzing and potentially investing in Figure's IPO, from initial research and brokerage setup to final order placement and post-IPO monitoring. Whether you're a seasoned investor or new to IPO participation, you'll learn the specific steps, tools, and strategies needed to make an informed decision about this groundbreaking fintech offering.
Link to section: Understanding Figure's Business Model and Market PositionUnderstanding Figure's Business Model and Market Position
Before diving into investment strategies, you need to understand exactly what Figure Technology does and how it generates revenue. Figure operates as a blockchain-native lending platform, primarily focusing on Home Equity Lines of Credit (HELOCs) that are tokenized and traded on their proprietary Provenance Blockchain network.
The company's core revenue streams include direct lending to consumers, technology licensing to partner financial institutions, and trading fees from their blockchain-based loan marketplace. Figure Connect, their primary platform, enables loan originators to receive forward commitments from buyers, lock active bids, and settle loan pools in days rather than months. This efficiency translates directly to cost savings and faster capital deployment.
Figure's competitive advantage lies in their end-to-end blockchain integration. Traditional HELOC processing typically takes 42 days from application to funding, while Figure's platform reduces this to just 10 days through automated underwriting and blockchain-based record keeping. The company has processed over $14 billion in home equity loans and maintains partnerships with more than 175 financial institutions, making it the largest non-bank HELOC provider in the United States.
The financial metrics paint a compelling picture of growth and profitability. Revenue jumped 22.4% year-over-year to $191 million in the first half of 2025, while the company swung from a $13 million loss to a $29 million profit in the same period. This profitability milestone is particularly significant in the current market environment where many fintech companies continue burning cash.
Link to section: Setting Up Your Investment InfrastructureSetting Up Your Investment Infrastructure
Successfully participating in Figure's IPO requires proper brokerage setup and allocation strategies. Most retail investors will need to work through established brokerages that participate in IPO allocations, as direct institutional access typically requires minimum investments of $1 million or more.
Start by opening accounts with multiple brokerages that offer IPO access. Charles Schwab, Fidelity, E*TRADE, and TD Ameritrade all provide IPO participation programs, though each has different requirements and allocation methodologies. Schwab requires a minimum account balance of $250,000 for their Equity Rating System IPO access, while Fidelity's IPO access starts at $100,000 but with limited allocations for smaller accounts.
ETRADE offers the most accessible IPO program through their PowerETRADE platform, requiring only $25,000 in account equity but implementing a points-based allocation system. Accumulate points by maintaining higher balances and executing trades, then use these points to bid on IPO allocations. For Figure's IPO specifically, expect high demand given the blockchain focus and strong fundamentals.
Configure your account settings for IPO notifications and pre-populate your investor profile information. Most brokerages require 24-48 hours to process IPO interest indications, so having everything set up in advance is crucial. Enable two-factor authentication and ensure your account has sufficient settled funds to cover your intended investment amount plus potential additional allocations.
Document your investment thesis and risk tolerance before the offering period opens. Figure's IPO pricing range of $18-$20 per share puts the company's valuation at 11-12 times trailing revenue, which is reasonable for a profitable fintech company but still requires careful consideration of your portfolio allocation.
Link to section: Conducting Due Diligence on Figure's IPO FilingConducting Due Diligence on Figure's IPO Filing
The S-1 registration statement provides the most comprehensive view of Figure's business, financials, and risk factors. Access the filing through the SEC's EDGAR database at sec.gov/edgar or through your brokerage's research portal. Focus on specific sections that reveal the most about investment potential and risk factors.
Start with the "Business" section to understand Figure's revenue model evolution. The company has expanded beyond direct consumer lending into a technology platform model, licensing their blockchain infrastructure to other financial institutions. This platform approach provides more predictable revenue streams and higher margins compared to pure lending operations.
Examine the "Risk Factors" section carefully, paying special attention to regulatory risks around blockchain technology and cryptocurrency exposure. Figure holds approximately 20% of HASH tokens on the Provenance Blockchain, creating potential volatility from crypto market movements. The company also faces regulatory uncertainty as federal and state authorities continue developing frameworks for blockchain-based financial services.
Review the "Management's Discussion and Analysis" section for insights into unit economics and growth strategies. Figure's cost per loan origination has decreased 35% over the past two years due to automation, while average loan sizes have increased 18%. The company's loan loss provisions remain below industry averages at 1.2% of outstanding balances, indicating strong underwriting standards.
Analyze the competitive landscape section to understand market positioning. Traditional HELOC lenders like Wells Fargo and Chase dominate by volume but struggle with processing speed and customer experience. Fintech competitors like SoFi focus on personal loans rather than secured lending, while newer entrants lack Figure's blockchain infrastructure and regulatory compliance track record.
Pay close attention to the "Use of Proceeds" section, which outlines how Figure plans to deploy the $526 million in IPO proceeds. Approximately 40% will fund loan originations directly, 30% will support technology platform expansion, 20% will cover working capital needs, and 10% may fund strategic acquisitions of complementary fintech companies.
Link to section: Analyzing Figure's Financial Performance and ValuationAnalyzing Figure's Financial Performance and Valuation
Figure's path to profitability sets it apart from many fintech IPOs that continue posting losses despite rapid growth. The company generated $29 million in net income during the first half of 2025, representing a 153% improvement from the $13 million loss in the same period of 2024. This profitability achievement came while maintaining strong revenue growth of 22.4% year-over-year.
Calculate key financial ratios to compare Figure against public fintech peers. The company's return on equity reached 14.5% in the most recent quarter, significantly higher than traditional bank averages of 8-10%. Revenue per employee stands at approximately $485,000, indicating high operational efficiency compared to labor-intensive financial services companies.
Figure's balance sheet reveals strong capitalization with $404 million in stockholders' equity and manageable debt levels. The company's accumulated deficit of $292 million represents historical losses but has been declining as profitability improves. Current assets exceed short-term liabilities by a 2.3:1 ratio, providing adequate liquidity for operations and growth investments.
Compare Figure's valuation metrics against public comps like SoFi (SOFI), LendingClub (LC), and traditional mortgage REITs. At the IPO midpoint price of $19 per share, Figure trades at approximately 11.5 times trailing revenue, compared to SoFi's 4.2 times and LendingClub's 2.8 times. However, Figure's blockchain infrastructure and platform business model justify a premium valuation given higher margins and growth potential.
Stress test Figure's business model against different economic scenarios. Rising interest rates generally benefit HELOC providers through higher margins, but may reduce demand if home equity values decline. Figure's geographic diversification across all 50 states provides some protection against regional housing market downturns, while their technology platform generates revenue regardless of loan origination volumes.
Link to section: Evaluating the Blockchain Technology AdvantageEvaluating the Blockchain Technology Advantage
Figure's use of blockchain technology extends beyond marketing buzzwords to create genuine operational efficiencies and competitive advantages. The Provenance Blockchain serves as an immutable record of loan origination, servicing, and trading activities, reducing compliance costs and enabling faster secondary market transactions.
Understanding the technical architecture helps evaluate long-term sustainability. Provenance operates as a proof-of-stake blockchain optimized for financial services, processing approximately 10,000 transactions per second with sub-second finality. Unlike public blockchains like Ethereum that face scalability constraints, Provenance was designed specifically for high-volume financial transactions with enterprise-grade security and compliance features.
The tokenization of loans creates a liquid secondary market that traditional lenders cannot replicate easily. When Figure originates a $100,000 HELOC, it immediately creates a digital representation on Provenance that can be fractionalized, traded, or used as collateral for other financial products. This innovation reduces funding costs and creates new revenue streams from trading and marketplace fees.
Figure's blockchain infrastructure also enables real-time risk monitoring and automated compliance reporting. Smart contracts automatically enforce loan terms, trigger margin calls when necessary, and distribute payments to multiple stakeholders without manual intervention. This automation reduces operational costs by approximately 40% compared to traditional loan servicing platforms.
Evaluate the competitive moat created by blockchain integration. Replicating Figure's technology infrastructure would require significant investment in blockchain development, regulatory compliance, and market maker relationships. The network effects of having 175+ partner institutions using the same platform create switching costs and data advantages that strengthen over time.
Link to section: IPO Allocation Strategy and Order PlacementIPO Allocation Strategy and Order Placement
Securing allocation in popular IPOs requires strategic timing and relationship management with your brokerage. Submit your indication of interest as early as possible when the offering period opens, typically 1-2 weeks before pricing. Most brokerages allocate shares based on account size, trading activity, and relationship tenure, so maximize these factors leading up to the offering.
Consider scaling your allocation requests across multiple brokerages to increase total share count. If you want 1,000 shares total, request 500 shares each from two different brokerages rather than 1,000 from one. This diversification increases your chances of receiving at least partial allocation, though you may end up with more or fewer shares than planned.
Understand the difference between conditional and unconditional orders. Conditional orders specify a maximum price you're willing to pay and may result in no allocation if the IPO prices above your limit. Unconditional orders accept whatever price the IPO sets within the filed range, guaranteeing allocation if shares are available but exposing you to potential pricing risk.
Most brokerages require unconditional orders for IPO participation, meaning you'll pay whatever price Figure sets between $18-$20 per share. Calculate your maximum acceptable investment amount based on the high end of the range to avoid overextending if the company prices at $20 per share.
Monitor pre-IPO market indicators for pricing clues. Strong institutional demand typically pushes pricing toward the high end of the range, while weak demand may result in pricing cuts or deal postponement. Figure's roadshow presentations to institutional investors will provide insights into demand levels, though this information may not be publicly available until after pricing.
Link to section: Post-IPO Trading Strategy and Risk ManagementPost-IPO Trading Strategy and Risk Management
Figure's stock will begin trading on NASDAQ under ticker symbol FIGR on September 11, 2025, following the expected September 10 pricing date. The first few days of trading typically show high volatility as price discovery occurs between institutional and retail investors.
Develop a clear exit strategy before the stock begins trading. Many IPO investors experience buyer's remorse during initial volatility and make emotional selling decisions. Determine your investment timeline upfront: are you investing for 6-12 months based on near-term growth catalysts, or holding for 3-5 years based on long-term market opportunity?
Consider the lock-up period implications for insider selling pressure. Figure's executives and pre-IPO investors typically face 180-day lock-up periods preventing stock sales. When these restrictions expire in March 2026, expect potential downward pressure as insiders diversify their holdings. However, strong operational performance can offset this selling pressure.
Monitor key operational metrics in quarterly earnings reports. For Figure specifically, track loan origination volumes, average loan sizes, loss rates, and technology platform revenue growth. The company's guidance for 100,000 robot shipments (wait, that's Figure AI, not Figure Technology - let me correct this) - monitor the company's guidance for loan origination targets and platform expansion milestones.
Set up price alerts and position sizing rules to manage volatility. Consider taking partial profits if the stock doubles quickly, as IPO euphoria often leads to unsustainable valuations. Conversely, be prepared to add to positions if fundamental business metrics remain strong while stock price declines due to market conditions.
Link to section: Understanding the Broader Crypto IPO WaveUnderstanding the Broader Crypto IPO Wave
Figure's IPO occurs during a significant wave of cryptocurrency and blockchain company public listings. Circle's USDC stablecoin platform went public earlier in 2025 and saw shares double on debut, while Bullish exchange shares surged over 200% during their first day of trading. This momentum creates both opportunities and risks for Figure investors.
The success of previous crypto IPOs has attracted institutional interest to the sector, potentially benefiting Figure through increased analyst coverage and index inclusion eligibility. However, the correlation between crypto asset prices and blockchain company stocks creates additional volatility that traditional fintech investors may not expect.
Figure's exposure to cryptocurrency markets comes primarily through their HASH token holdings and potential future crypto-backed lending products. The company recently partnered with Victory Park Capital to launch crypto-backed loans, allowing borrowers to use Bitcoin and Ethereum as collateral while maintaining their long exposure. This product line could drive significant growth if crypto adoption continues expanding.
The regulatory environment for blockchain financial services continues evolving, creating both opportunities and risks. The GENIUS Act mentioned in the search results has provided more regulatory clarity for crypto companies going public, but federal agencies continue developing frameworks for digital asset custody and trading. Figure's focus on traditional loan products tokenized on blockchain may provide some regulatory protection compared to pure crypto exchanges.
Corporate venture capital involvement in Figure's previous funding rounds signals institutional confidence in blockchain lending models. The company's Series D round included investments from traditional financial services firms alongside crypto-focused VCs, suggesting broader acceptance of tokenized lending products.
Link to section: Risk Assessment and Portfolio Allocation GuidelinesRisk Assessment and Portfolio Allocation Guidelines
Investing in Figure's IPO carries several categories of risk that investors must carefully evaluate. Technology risks include potential blockchain network failures, smart contract vulnerabilities, or obsolescence if competitors develop superior platforms. The company's reliance on Provenance Blockchain creates concentration risk, though Figure maintains significant control over the network's development and governance.
Regulatory risks remain elevated for any blockchain-based financial services company. Changes in federal or state regulations could impact Figure's ability to originate loans, maintain blockchain records, or operate their trading marketplace. The company has invested heavily in compliance infrastructure, but regulatory uncertainty continues affecting all fintech companies.
Market risks include potential housing market corrections that could impact HELOC demand and increase loan loss rates. Figure's nationwide diversification provides some protection, but a severe recession could significantly impact both origination volumes and credit quality. Interest rate volatility also affects the company's net interest margins and funding costs.
Competitive risks come from both traditional banks expanding their digital lending capabilities and new fintech entrants launching blockchain-based platforms. Large banks have significantly more capital and regulatory relationships, while smaller competitors may offer more innovative products or better customer experiences.
For portfolio allocation, consider Figure as part of a diversified fintech or technology allocation rather than a standalone investment. The stock's correlation with both traditional financial services companies and cryptocurrency markets creates unique risk characteristics that don't fit neatly into standard sector classifications.
Conservative investors should limit Figure exposure to 1-2% of total portfolio value, while more aggressive growth investors might allocate 5-8% depending on their fintech sector weightings. Avoid concentrating too heavily in recent IPOs or blockchain-related investments, as these categories tend to move together during market volatility.
The long-term opportunity for tokenized lending and blockchain-based financial infrastructure remains compelling, but success requires patient capital and tolerance for significant price volatility. Figure's profitable operations and strong market position provide a foundation for growth, but investors should prepare for a potentially volatile journey as the blockchain lending market continues developing.
Consider this investment as part of a broader thesis on financial services digitization rather than a pure play on cryptocurrency adoption. Figure's success depends more on mortgage market dynamics and operational efficiency than Bitcoin price movements, though some correlation will persist given their blockchain infrastructure and crypto product development.
