When you pledge Bitcoin or Ethereum as collateral, the custody model determines how that BTC sits while your loan is outstanding. Multi-Party Computation (MPC) custody splits a single private key into several independent “shards.” Any withdrawal or movement requires a quorum of those shards to co-sign the transaction. No single participant controls—or can unilaterally lose—your assets.
Why MPC custody adds resilience
No single point of failure
Traditional custodians aggregate customer coins behind one entity. If that entity suffers a legal or financial freeze, retrieval can drag on indefinitely. MPC disperses key power across multiple validators, so the collateral remains accessible even if one party is taken offline.Real-time proof of collateral
At Figure, your Bitcoin collateral lives in a segregated MPC wallet. The wallet address is published, letting you verify balances on-chain 24/7.No rehypothecation
Figure does not lend out your BTC or ETH and does not stake ETH on your behalf. The coins remain in the MPC wallet, untouched, until you repay and the quorum returns them to your external address.
Step-by-step: how to view your BTC in its segregated MPC wallet
Log in to Figure Markets
Navigate to your CBL - click on Borrow > applicable application
Click on “add collateral” and copy the crypto address
Navigate to the applicable blockchain explorer for your collateral type
https://etherscan.io/ for ETH
Paste in your collateral address to see holdings in your unique collateral vault
With MPC custody you retain constant, on-chain visibility of your Bitcoin and the assurance that no single actor can move it without the required multi-signature quorum at your direction. That transparency—and the absence of rehypothecation—makes MPC a superior foundation for Bitcoin-backed lending.
