Mike Cagney: Figure Markets is digitizing capital markets – bringing traditional stocks, real assets and credit to the blockchain
Figure Markets is more than just a DeFi exchange – it’s a comprehensive financial ecosystem where everything from loan origination, trading, staking to owning blue-chip stocks is done entirely on the blockchain. In an exclusive chat, CEO Mike Cagney shares how Figure is reshaping capital markets with transparent and programmable technology.
Figure Markets looks to redefine DeFi. What makes your ecosystem different from traditional finance platforms and existing DeFi?
Mike Cagney: We’re building a closed loop where assets are created, traded, and reused without leaving the Figure Markets ecosystem. The goal is to vertically integrate all financial activities – from loan issuance and secondary trading to collateralization, staking, and borrowing – into a single system that runs entirely on the Provenance blockchain.
For example, users can open a Figure HELOC (Home Equity Line of Credit) loan, which is tokenized and traded directly on the platform, then used as collateral in Vaults to earn interest or swap to Bitcoin, ETH, or even Apple stock – all with just a few taps on a single wallet.
One highlight is that Forward Vaults offer high yields even in bear markets. How does Figure ensure that sustainability?
Mike Cagney: We don’t rely on token rewards like traditional DeFi. The base yield comes from the YLDS stablecoin, which mirrors the Fed’s Interbank Offered Rate (SOFR), minus a small fee. The higher yields come from tokenized HELOC loans – these are high-quality collateralized loans that pay interest regularly and are much more stable than the volatile crypto market.
Revenue comes from real interest – not token rewards – so users can rest assured that cash flows will continue regardless of coin prices rising or falling.
Demo Prime enables peer-to-peer lending without intermediaries. How does Figure solve the problem of risk and transparency in this model?
Mike Cagney: All loans are over-collateralized and automated by smart contracts with real-time oracles. If the LTV ratio exceeds a threshold, the assets are liquidated immediately. Collateral is held in a multi-party computation (MPC) wallet, no party can withdraw funds arbitrarily.
Users don’t have to trust Figure – they trust open source, a transparent blockchain, and block-by-block verifiable logic. That’s the real power of DeFi.
Figure will allow users to buy blue-chip stocks like Apple, Tesla with crypto. Is this really equity ownership or just an IOU like other projects?
Mike Cagney: This is real ownership. In the first phase, we use the ADR/GDR model, with a custodian bank holding the original shares, and the crypto receipts trade 1:1 on Figure Markets, which can be converted into shares at any time.
In the near future, Figure will deploy a direct listing on the blockchain under the '33 Act exemption, processed through an alternative trading system (ATS) regulated by the SEC. Investors will directly own the original shares, have voting rights and be recorded in the shareholder record.
Crypto stocks are still in a legal gray area. What does Figure do to ensure compliance?
Mike Cagney: We go the licensed route. Figure Markets operates an SEC-approved ATS, works with qualified custodians, and authorized transfer agents. Tokenization simply digitizes legal securities, and the entire regulatory framework – from issuance to settlement – is the same as traditional financial institutions do every day.
What does tokenization enable for capital markets that the current system cannot?
Mike Cagney: It eliminates multiple intermediaries like brokers and clearinghouses, allowing transactions to close almost instantly. That opens up real-time cross-asset use, 24/7 global trading, a publicly auditable shared ledger, and dramatically lower costs of capital.
Instead of waiting T+2 to own stocks or having to collateralize assets with a centralized bank, you can use a crypto HELOC to borrow stablecoins, buy BTC, and then switch to holding Tesla – all in minutes.
You had success with SoFi in TradFi. What makes you bet on DeFi now? And what does ‘success’ look like for Figure by the end of 2025?
Mike Cagney: Smart contracts allow us to scale, be transparent, and interoperate with assets in ways that legacy infrastructure can’t. By the end of 2025, I expect