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Figure Aims To Create Alternative to Stablecoins Amid $60 Million Exchange Build

Published March 19, 2024 4:56 PM
Eddie Mitchell
Published March 19, 2024 4:56 PM
By Eddie Mitchell
Verified by Peter Henn
Key Takeaways
  • Figure Technologies plans to launch a new crypto exchange in April 2024.
  • The exchange will leverage decentralized technology and have no possession over the user’s assets.
  • Figure Technologies is also proposing to create and launch a unique alternative to stablecoins.

Figure Technologies, a fintech company best known for founding the Provenance blockchain, has recently raised $60 million in funding for its novel decentralized exchange (DEX) build.

As well as looking to launch an alternative regulated stablecoin security in the United States, the firm is now planning to launch a decentralized competitor to centralized exchanges, Figure Markets.

Figure Markets

As per the official press release , March 18, 2024, Figure Technologies successfully bagged $60 million in Seed A capital led by the likes of Pantera Capital, Jump Crypto, and Lightspeed Faction.

The platform is billed as a  “decentralized custody crypto exchange” that leverages the Provenance Blockchain. It features “highly liquid markets” as well as borrowing and lending options. It says:

“Over time the intent is to offer trading in a variety of equity, fixed income and crypto products, alternative investment options, utilizing best-in-class cross-collateralization and netting.”

It’s also described as a “blockchain-native security marketplace” flush with all security features built on Multi-Party Computation (MPC) technology. This distributes private keys across a decentralized network and requires “multi-approval for every movement.”

As opposed to potential single-point-of-failure risks with centralized exchanges, Figure Technologies is opting to eliminate centralized custodians and clearing agents. This should, as the release notes , minimize counterparty risk and keep in step with the spirit of crypto by allowing users to retain total control over their digital assets.

A Regulated Stablecoin Alternative?

Perhaps one of the most interesting facets of the announcement is yet another mention of Figure’s intentions to create an alternative to stablecoins. These, the organization says, will come in the form of interest-paying fixed-income debt securities, or “Certificates.”

The draft registration document  filed with the United States Securities and Exchange Commission (SEC) in October 2023, says they are designed to be transferred through peer-to-peer transactions on Provenance.

Mike Cagney, CEO of Figure Markets said:

“Our goal is to extend the benefits of blockchain to a broader range of assets – including crypto and securities. It’s ironic that the largest crypto exchanges aren’t on blockchain–we aim to change that.”

The stablecoin alternative will serve to support Figure Markets, and, unlike many existing stablecoins, allow investors to remain anonymous.

Improving on old Ideas

Figure Co-Founder and CEO Mike Cagney and June Ou, co-founder and President, gave their thoughts  on the development.

Figure Markets says it does not want to follow the steps of FTX. Instead, it will stop the exchange from having any possession over users assets. A commitee of “market makers and buy-side firms” will contribute to the creation of the market. This will include them providing “deep, two way liquid markets”. Figure Markets added:

“We want to capture what was great about, but never repeat the failures of, FTX.”

The onshore marketplace should launch in April 2024, while the offshore exchange will come out later in the second quarter of 2024. Therefore, it will be interesting to see whether or not this exchange takes off.

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