Private Financial Institution Completes Loan Sale On Figure Blockchainbr>
Blockchain firm Figure Technologies has announced that Pacific Private Money and Saluda Grade have completed the first third-party trade on Figure’s blockchain platform Provenance.
Figure Technologies aims to transform the lending experience for consumers through the power of blockchain technology. The core of Figure’s lending products is its Provenance blockchain, which was unveiled in 2018. The company’s flagship product is Figure Home Equity Line, a fixed-rate line of credit that provides approval in as little as five minutes and funding in five days — all online. It allows consumers to borrow against the equity in their homes without the paperwork-intensive, 45-day process traditional lenders require. Earlier this year, Figure began offering student loan refinance and mortgage refinance products. The company claims to have originated more than $1 billion in assets.
Figure said in a press release that the first blockchain-based third-party loan sale demonstrated significant efficiencies in the $400 billion annual loan origination and trading process. Saluda Grade, a boutique advisory and asset management firm focused on the private non-bank real estate finance sector, purchased Pacific Private Money loans into their Lake Summit Alternative Loan Trust on behalf of third-party investors. The transaction was completed on May 1.
“This is the first of a minimum of $100 million in loan origination and sales transactions that Pacific has committed to making on Provenance over a 12-month period,” Figure said. “Pacific Private is currently onboarding all of its loans to Provenance via the newly released software development kit.”
Mike Cagney, CEO and Co-founder of Figure, said that the transaction is a huge step forward for blockchain technology because they’ve once again demonstrated the speed and cost savings Provenance can bring to the asset origination and capital markets ecosystem.
“We were able to execute this transaction instantly, not the 20 days it would have taken before Provenance, meaning we can drive significant cost savings and efficiencies across the entire $400 billion Real Estate Loan Market,” Cagney said.
Ryan Craft, CEO and Founder of Saluda Grade, said that the short duration transitional bridge loan market is the perfect asset class to benefit from Provenance’s operational efficiencies, as lenders like Pacific Private Money can digitally originate and quickly distribute loan production seamlessly to institutional investors.
“Our company is excited at the value creation that Provenance can deliver, and we hope to onboard our whole portfolio of alternative lenders to the platform,” said Craft.