SAN FRANCISCO, May 9, 2019 — Figure Technologies, Inc. (Figure™), a leading fintech company in both the home equity and blockchain space, has closed an up to $1 billion uncommitted asset-based financing facility on the Provenance.io blockchain with Jefferies and WSFS Institutional Services. As part of the facility, Jefferies may make periodic advances to Figure under a variable funding note, which is secured by Figure home equity lines.
The facility is custodied on Provenance.io, which was developed by Figure, a leading fintech company founded by former SoFi CEO Mike Cagney. Figure leverages Provenance.io to originate, finance, and sell its HELOC loans to banks, asset managers, and credit funds -- all entirely on blockchain. Last month, Figure originated over $59MM in HELOCs on chain, providing members with 5-minute approval and 5-day funding, all online.
Jefferies, WSFS and Figure have been working together for over six months to structure and implement the financing facility on Provenance. “We’ve already experienced the benefits of financing on Provenance.io,” notes Brian McGrath, head of the Securitized Markets Group at Jefferies. “We’ve gained full transparency into the underlying assets, real-time access to loan performance and the process of accepting collateral has less friction than off chain.”
WSFS Institutional Services, a division of WSFS Bank, is a participating member of Provenance and is acting as trustee for Jefferies. “WSFS is excited to partner with Figure and Jefferies to enable what will soon become the first ABS transaction with loans originated on a blockchain platform,” said Kristin Moore, senior vice president and director of corporate trust at WSFS. “At WSFS, we have a proud history of partnering with innovative companies that continuously look to create new services for customers and provide solutions to advance our industry. We’ve enjoyed working with Figure and Jefferies on this transformative deal.”
Figure built and deployed Provenance.io, a distributed stakeholder blockchain, in 2018. The company leverages the security, efficiencies and cost advantage of blockchain for loan origination, financing, sales and securitization. A diverse set of funds, banks and dealers is active on Provenance.io today.
“With the financing facility now in place, Provenance.io can support the entire end-to-end financing of loans, from origination to funding to servicing to financing,” said Mike Cagney, CEO and co-founder of Figure. “It paves the way for the first securitization on chain, which will demonstrate the massive cost savings, risk reduction and liquidity benefits blockchain delivers.”
For more information about Figure and its offerings, visit figure.com or follow us on Facebook at facebook.com/Figure. To learn more about Provenance, visit provenance.io and read the recently released white paper on how blockchain can ultimately reduce the cost of credit ratings and drive ratings improvement.
Figure Technologies, Inc. creates innovative consumer financial solutions for home improvement, debt consolidation and retirement, while providing its members with financial education and financial empowerment. Its mission is to build and promote innovative financial products on blockchain that benefit consumers and eliminate rent-seeking, illiquidity and other inefficiencies present in current financial markets. The company’s flagship product, the Figure Home Equity Line, uses Provenance.io, the blockchain protocol Figure created. Based in San Francisco, Figure was co-founded by Mike Cagney, former co-founder and CEO of SoFi, along with Alana Ackerson, Cynthia Chen and June Ou. Figure has more than 100 employees in offices in California, Nevada, Montana and Utah. Figure has raised over $130 million since its founding in January 2018.
Jefferies Group LLC, the largest independent full-service global investment banking firm headquartered in the U.S. focused on serving clients for over 55 years, is a leader in providing insight, expertise and execution to investors, companies and governments. Our firm provides a full range of investment banking, advisory, sales and trading, research and wealth management services across all products in the Americas, Europe and Asia. Jefferies Group LLC is a wholly-owned subsidiary of Jefferies Financial Group Inc. (NYSE: JEF), a diversified financial services company.
WSFS Financial Corporation is a multi-billion dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally-managed bank and trust company headquartered in Delaware and the Delaware Valley. As of March 31, 2019, WSFS Financial Corporation had $12.2 billion in assets on its balance sheet and $19.0 billion in assets under management and administration. WSFS operates from 152 offices located in Delaware (49), Pennsylvania (72), New Jersey (29), Virginia (1) and Nevada (1) and provides comprehensive financial services including commercial banking, retail banking, cash management and trust and wealth management. Other subsidiaries or divisions include Beneficial Equipment Finance Corporation, Cash Connect®, Christiana Trust Group, Cypress Capital Management, LLC, NewLane Finance, Powdermill Financial Solutions, WSFS Institutional Services, WSFS Wealth Investments, West Capital Management, and WSFS Mortgage and Arrow Land Transfer. Serving the greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit wsfsbank.com.