The Financial Industry Regulatory Authority has approved Figure Securities as a broker-dealer, and the US Securities and Exchange Commission has approved its blockchain-based trading system.
The news indicates that the California-based firm has obtained all of the requisite permits to function as a broker-dealer for blockchain-based securities, a development that the company expects to affect the financial services market significantly.
Mike Cagney, the company’s co-founder, and CEO characterized the creation as a “transformational case” for both the company and the industry in a statement.
“Being approved as a broker-dealer and being able to operate our [Alternative Trading System] is a transformational event for our company that will have significant impact across the financial services sector.”
According to the press release, Figure’s service will use blockchain technology to control cap tables, create security tokens, and offer a range of services to fund managers.
Securities would be stored on the Provenance blockchain, which was created specifically for the financial services industry’s needs. Then, as required, they can be exchanged or traded on the blockchain.
Figure Securities is now well placed to serve the rising interest in power-subsidies/ securities among all types of investors, including institutional investors who are increasingly interested in blockchain securities and other digital assets.
Figure has also partnered with Provenance to provide digital loans through the Provenance Marketplace, enabling instant loan performance data and same-day settlement on the blockchain.
Figure had previously switched to Provenance for its asset-backed securitization, the first of its kind, back in March 2020.
In the United States, firms can only sell blockchain-based securities with prior approval from the SEC and other regulators.