The post Figure Proposes Solana-Native IPO for Regulated Onchain Equity appeared on BitcoinEthereumNews.com. Figure Technology has filed for an IPO with the U.SThe post Figure Proposes Solana-Native IPO for Regulated Onchain Equity appeared on BitcoinEthereumNews.com. Figure Technology has filed for an IPO with the U.S

Figure Proposes Solana-Native IPO for Regulated Onchain Equity

  • Figure’s Solana-native equity bypasses Nasdaq and brokers, using its own alternative trading system for direct onchain transactions.

  • Onchain shares enable real-time settlement and seamless integration with DeFi for collateral in lending and borrowing activities.

  • Approval would allow parallel listings, giving investors options between traditional Nasdaq shares and tokenized Solana equity, as per SEC filings and executive statements.

Discover Figure’s innovative Solana-native equity IPO filing for blockchain-traded shares. Explore how this regulated DeFi integration could transform equity markets—read on for key details and implications.

What is Figure’s Solana-Native Equity IPO?

Figure’s Solana-native equity IPO represents a pioneering effort to issue company shares directly on the Solana blockchain, bypassing conventional stock exchanges and intermediaries. The filing, submitted to the U.S. Securities and Exchange Commission, outlines a structure where equity tokens function as regulated securities tradable through decentralized protocols. This approach leverages Solana’s high-speed infrastructure to enable instant settlements and broader financial utility, such as using shares as collateral in DeFi applications, fundamentally bridging traditional finance with blockchain technology.

How Does Solana-Native Equity Integrate with Traditional Markets?

Figure Technology’s proposal allows for parallel equity offerings, where investors can select between standard Nasdaq-listed shares and their blockchain counterparts on Solana. The onchain version would operate via Figure’s proprietary alternative trading system, akin to a decentralized exchange, eliminating the need for brokers like Robinhood or prime brokers such as Goldman Sachs. According to the SEC filing, this tokenized equity settles in real time, contrasting with the T+1 or longer cycles in legacy systems, and permits holders to engage in DeFi activities like lending or providing liquidity.

Executive Chairman Mike Cagney emphasized during the Solana Breakpoint conference that this model unlocks DeFi opportunities inaccessible to broker-held securities. Figure’s background in tokenized lending platforms positions it well to manage compliance, ensuring shares adhere to U.S. securities regulations while offering enhanced flexibility. Data from blockchain analytics firms highlight Solana’s capacity for handling over 2,000 transactions per second at minimal fees, making it ideal for equity trading volumes. This integration could democratize access to advanced financial tools, as noted by industry observers tracking tokenized asset growth, projected to reach trillions in market value by 2030 according to reports from firms like Boston Consulting Group.

Frequently Asked Questions

What Are the Key Benefits of Figure’s Solana-Native Equity for Investors?

Investors gain real-time transaction settlements and the ability to use equity as collateral in DeFi protocols for lending or yield generation, all without intermediaries. This reduces costs and enhances liquidity compared to traditional shares, while maintaining regulatory oversight through SEC approval, providing a secure yet innovative investment avenue in about 45 words.

Why Did Figure Choose Solana for Its Native Equity Issuance?

Figure selected Solana due to its exceptional throughput, rapid finality, and low transaction costs, which support efficient high-volume equity trading. As Matt Hougan, Chief Investment Officer at Bitwise Asset Management, has observed, Solana stands out for tokenized assets and stablecoins, aligning perfectly with Figure’s vision for seamless onchain equity integration that scales reliably for everyday financial use.

Key Takeaways

  • Revolutionary Structure: Figure’s IPO filing introduces Solana-native equity, allowing direct blockchain trading without brokers, as detailed in the recent SEC submission.
  • DeFi Compatibility: Tokenized shares enable real-time settlements and collateral use in lending protocols, expanding utility beyond traditional holdings per executive insights.
  • Investor Choice: Post-approval, parallel Nasdaq and Solana listings empower users to opt for conventional or DeFi-enhanced securities, fostering market innovation.

Conclusion

Figure Technology’s Solana-native equity IPO filing marks a significant step toward merging regulated securities with blockchain efficiency, offering real-time trading and DeFi integration without sacrificing compliance. By leveraging Solana’s robust network, as praised by experts like Matt Hougan from Bitwise, this initiative could set a precedent for future onchain issuances. As the SEC review progresses, stakeholders should monitor developments closely, positioning themselves at the forefront of tokenized finance evolution.

Delving deeper into the implications, Figure’s move underscores the growing momentum in tokenized real-world assets (RWAs). The company’s filing details a comprehensive framework where equity issuance occurs natively on Solana, ensuring that tokens are fully compliant with securities laws. This includes KYC/AML verifications embedded in the smart contracts, preventing unauthorized access and maintaining investor protections akin to those on established exchanges.

From a technical standpoint, Solana’s proof-of-history consensus mechanism provides the sub-second finality essential for equity markets, where delays can impact pricing and execution. RedStone Research, in their analysis of blockchain ecosystems, positions Solana as a frontrunner for tokenized U.S. Treasuries and similar instruments due to its scalability. Figure aims to extend this capability beyond its own shares, potentially creating an ecosystem where other firms can launch Solana-native equities through its platform.

Mike Cagney’s announcement at Solana Breakpoint highlighted the strategic pivot: “This is about bringing equity to the blockchain in a way that’s native and regulated, opening doors to DeFi that traditional finance can’t touch.” Such tokenized equity could reduce settlement risks, a persistent issue in global markets costing billions annually, as per reports from the World Economic Forum. By settling instantly onchain, Figure mitigates counterparty risks and enhances capital efficiency.

Regulatory hurdles remain, with the SEC’s scrutiny focusing on investor safeguards and market integrity. Historical precedents, like the approval of Bitcoin ETFs, suggest a thawing environment for crypto-integrated products. If greenlit, Figure’s dual-listing model would allow seamless conversions between Nasdaq and Solana shares, perhaps via atomic swaps, further blurring lines between TradFi and DeFi.

Broader industry impacts include accelerated adoption of blockchains for securities. Firms like BlackRock have already tokenized funds on Ethereum, but Solana’s cost advantages could attract more issuers. According to Deloitte’s blockchain surveys, over 70% of financial institutions view tokenization as a priority, with equity being a prime candidate. Figure’s initiative, rooted in its Provenance Blockchain experience, demonstrates practical expertise in this space.

For retail investors, this means democratized access: no need for high-minimum brokerage accounts to tap DeFi yields on equity holdings. Institutional players benefit from programmable shares that automate dividends or voting via smart contracts. As Cagney noted, this isn’t just an IPO—it’s a blueprint for onchain capital markets.

In summary, while the SEC process may take months, Figure’s Solana-native equity proposal signals irreversible progress. Monitoring filings from the SEC docket and updates from Solana’s developer community will be crucial for understanding timelines and expansions.

Source: https://en.coinotag.com/figure-proposes-solana-native-ipo-for-regulated-onchain-equity

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