Keynote: Figure (Mike Cagney)

A company that has originated $22 billion in loans directly on blockchain is now bringing its massive portfolio of real-world assets to Solana—and it's just getting started. At Breakpoint 2024, Figure co-founder Mike Cagney unveiled an ambitious vision that could fundamentally reshape how securities trade, how mortgages generate DeFi yields, and how the entire equity stack operates.

Summary

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Figure, founded in 2018 with the thesis that blockchain would transform capital markets, has quietly become one of the largest real-world asset originators in crypto. The company has originated approximately $22 billion in on-chain loans to date, running at roughly $1.1 billion per month, with over 250 partners—including 10 of the top 20 mortgage companies—using its technology.

What makes Cagney's presentation particularly significant is the multi-pronged expansion into the Solana ecosystem. Figure is bringing its yield-bearing security product to Solana, launching a liquid staking protocol called HASTRA that channels real mortgage yields into DeFi, and perhaps most radically, creating a blockchain-native equity trading system that bypasses traditional financial infrastructure entirely.

The implications are substantial. Rather than relying on synthetic yields or algorithmic mechanisms, Solana DeFi users can now access returns backed by actual U.S. mortgages. Meanwhile, Figure's blockchain-native equity represents a complete disruption of how securities are issued, traded, and settled—eliminating the need for DTCC, traditional exchanges, introducing brokers, and prime brokerage services.

This convergence of traditional finance infrastructure with blockchain-native systems represents exactly the kind of institutional-grade real-world asset integration that could drive the next wave of DeFi adoption.

Key Points:

From FinTech Vision to $22 Billion Reality

Figure's journey began with a simple but powerful insight: capital markets would be transformed by blockchain's ability to create native digital assets, replacing trust with cryptographic truth. When Cagney and his team pitched this vision to banks in 2018, the response was universal—everyone loved it, but nobody wanted to be first.

So Figure built it themselves. Starting with home equity lines of credit (HELOCs) in 2018, the company became one of the earliest originators of consumer loans on public blockchain, following shortly after MakerDAO's pioneering work in 2017. The evolution from direct-to-consumer lending to a B2B2C model—where over 250 partners now use Figure's technology—demonstrates the scalability of on-chain lending infrastructure.

The numbers speak for themselves: $22 billion originated, $1.1 billion monthly run rate, and the first AAA-rated securitization on blockchain in 2023. According to Cagney, Figure HELOC is currently the 12th largest crypto asset on CoinGecko, cementing the company's position in the RWA ecosystem.

Yields: A Security Version of Stablecoin

One of Figure's most innovative products is "Yields," the first U.S. public security native on public blockchain. Born from regulatory constraints that blocked Cagney's earlier attempts to tokenize bank deposits, Yields functions like a stablecoin but pays interest—and importantly, remains freely transferable peer-to-peer despite its security status.

Figure is now minting Yields natively on Solana, creating significant opportunities for the builder community. Developers can now integrate a yield-bearing dollar-equivalent asset into their applications, providing users with returns on their holdings without sacrificing the utility of traditional stablecoins.

Perhaps more critically, Yields future-proofs the crypto ecosystem against banking infrastructure risks. Cagney referenced the concerning period roughly 18 months ago when the industry was down to perhaps two banks capable of handling fiat on-ramps and off-ramps. As a registered security, Yields provides a regulatory-compliant mechanism for moving money between traditional finance and blockchain regardless of banking relationship volatility.

HASTRA: Mortgage Yields Meet DeFi

The HASTRA protocol represents Figure's direct entry into Solana DeFi. Launched just one week before Cagney's presentation, the liquid staking protocol allows users to pledge wrapped Yields tokens into HASTRA in exchange for a "Prime" token. This Prime token is then invested in a DeFi marketplace backed by Figure's home equity lines of credit.

The early traction has been remarkable. Within seven days, over $75 million had been deployed across wrapped Yields and Prime tokens. HASTRA became the fourth-largest market on Kamino, with users earning over 24% on multiply products through the protocol. Perhaps most notably, Gauntlet—a prominent DeFi risk management firm—announced they would allocate a portion of their cash vault to Prime.

What differentiates HASTRA from other yield-generating DeFi protocols is the source of returns. Instead of basis trades, funding rate arbitrage, or algorithmic mechanisms, the yield comes from actual U.S. mortgages originated natively on blockchain. This provides DeFi users with exposure to a familiar, tangible asset class.

Blockchain-Native Equity: Disrupting the Entire Stack

Perhaps the most ambitious announcement was Figure's plan to issue a second class of equity—native on public blockchain. Already a public company following a September IPO, Figure filed another S1 approximately ten days before Breakpoint to create blockchain-native shares that won't sit at DTCC, won't trade on NASDAQ or NYSE, and won't require introducing brokers like Robinhood or prime brokers like Goldman Sachs.

Instead, this security will trade on Figure's alternative trading system (ATS), which functions as a decentralized exchange with self-custody, self-settlement, and self-clearing capabilities. Users will connect through a wallet rather than a brokerage account and can take their securities into DeFi to borrow against or lend out.

Cagney framed this as disrupting the entire equity stack—from issuance through settlement—and bringing it native to public chain. The long-term vision includes enabling native equity issuance for other companies within the Solana ecosystem, potentially creating an entirely new paradigm for how startups and established companies raise capital and provide liquidity to shareholders.

Facts + Figures

• Figure has originated approximately $22 billion in loans on-chain since 2018
• The company is currently running at approximately $1.1 billion in monthly originations
• Over 250 partners use Figure's technology for on-chain loan origination
• 10 of the top 20 mortgage companies are Figure partners
• Figure conducted the first blockchain securitization in 2020
• The first AAA-rated blockchain securitization was completed in 2023
• Figure HELOC is ranked as the 12th largest crypto asset on CoinGecko
• Figure has approximately $15 billion in mortgages and over $1 billion in crypto-backed loans
• HASTRA attracted over $75 million within one week of launch
• Users are earning over 24% on Kamino multiply products through HASTRA
• HASTRA became the fourth-largest market on Kamino within a week
• Gauntlet is allocating a portion of its cash vault to Prime tokens
• Yields is the first U.S. public security native on public blockchain
• Figure went public in September 2024
• A second S1 was filed approximately 10 days before Breakpoint for blockchain-native equity

Top Quotes

"Capital markets are going to be massively transformed by blockchain, the ability to create native digital assets, where we can displace trust with truth."

"We went to a bunch of banks and pitched this idea, and universally every bank said, this is awesome. We love it. We'd like to be the 10th bank to do this."

"With Yields as a security, we future-proofed that construct. We're effectively providing a mechanism where irrespective of regime changes, we're going to be able to get money on and off public blockchain."

"What people are getting out of this is underlying yield that's coming from something they can get their arms around, right? It's not selling the forward to spot and earning the carry. It's not any algorithm that functions. It's actually US mortgages."

"This security is native on blockchain. It trades on our alternative trading system, which is effectively a decentralized exchange. It's a self-custody, self-settle, self-clear marketplace."

"We're basically disrupting the entire equity stack and bringing it native to public chain."

Questions Answered

What is Figure and what do they do?

Figure is a financial technology company founded in 2018 that originates loans directly on public blockchain. The company started with home equity lines of credit and has expanded to work with over 250 partners, including 10 of the top 20 mortgage companies. They've originated approximately $22 billion in on-chain loans and were pioneers in blockchain-based securitization, completing the first such transaction in 2020 and the first AAA-rated securitization in 2023.

What is Yields and why does it matter for Solana?

Yields is the first U.S. public security native on public blockchain—essentially a yield-bearing version of stablecoin. Unlike traditional stablecoins like USDC or USDT, Yields pays interest to holders while remaining freely transferable peer-to-peer. Figure is now minting Yields natively on Solana, giving builders a new tool for creating applications that provide users with returns on their dollar holdings. Additionally, as a registered security, Yields helps future-proof the ecosystem against banking infrastructure risks that could disrupt fiat on-ramps and off-ramps.

How does HASTRA work and what returns can users expect?

HASTRA is a liquid staking protocol launched by Figure on Solana. Users purchase wrapped Yields tokens and pledge them into HASTRA to receive Prime tokens. These Prime tokens represent investment in a DeFi marketplace backed by Figure's home equity lines of credit. Within one week of launch, users were earning over 24% on Kamino multiply products through the protocol. The key differentiator is that yields come from actual U.S. mortgages rather than synthetic mechanisms or algorithmic strategies.

What makes Figure's blockchain-native equity different from regular stocks?

Figure is creating a new class of equity that exists entirely on public blockchain, bypassing traditional financial infrastructure. Unlike regular stocks that sit at DTCC and trade on exchanges like NASDAQ through brokers, this security will trade on Figure's alternative trading system—essentially a decentralized exchange with self-custody, self-settlement, and self-clearing. Users connect via wallet rather than brokerage account and can use their securities in DeFi applications for borrowing and lending. This represents a fundamental disruption of the entire equity stack from issuance through settlement.

How much in real-world assets is Figure bringing to Solana?

Figure currently has approximately $15 billion in mortgages and over $1 billion in crypto-backed loans that they plan to bring into the DeFi ecosystem. The HASTRA protocol is the initial mechanism for channeling these assets to Solana users, with over $75 million already deployed within the first week of launch. The company views this as just the beginning of a larger effort to connect institutional-grade real-world assets with decentralized finance.

Why did Figure build their own lending platform instead of working with banks?

When Figure first approached banks with their vision of originating and securitizing loans on blockchain, every bank expressed enthusiasm but declined to be first movers—each wanted to be "the 10th bank" to adopt the technology. Rather than wait for institutional adoption, Figure built its own lending platform and began originating loans directly on-chain. This approach proved successful, eventually attracting 250+ partners including major mortgage companies who now use Figure's technology for their own originations.