Pantera Partner: Why We Are More Optimistic About RWAs Than Ever Before

Author: Paul Veradittakit, Managing Partner at Pantera Capital; Translated by: Shaw Jinse Finance

Overview

• Figure Technologies' IPO marks a significant shift in the blockchain industry towards real-world applications, addressing practical financial issues such as home equity loans.
• The success of Figure is attributed to its ability to simplify traditional financial processes, such as shortening loan cycles and promoting network effects through its market model (Figure Connect) and regulatory milestones like YLDS;
• Figure's IPO proves that the true value of blockchain lies in enhancing existing financial systems rather than completely replacing them.

Figure Technologies successfully went public, marking a watershed moment for the blockchain industry. We are incredibly excited about this and look forward to its impact on the future of finance.

The Power of Real-World Blockchain Applications

At Pantera, we have always believed that the most transformative applications of blockchain are those that directly reach the real economy. Figure perfectly embodies this concept. While much of the cryptocurrency space focuses on speculation and financial engineering, Figure is addressing real issues for ordinary Americans who need to access property equity.

Data speaks for itself. Figure has revolutionized the home equity loan model, reducing the loan cycle from 30 days to 5 days. They have facilitated over $17 billion in loans and processed more than $50 billion in public blockchain transactions. As the largest non-bank home equity line of credit (HELOC) lender in the U.S., they are not just a crypto startup – they are a mature financial services company, powered by blockchain technology.

The network effect truly exists

What excites me the most in the development of Figure is their transformation towards a market model. Now, 170 third-party institutions have issued loans through Figure Connect. This network effect is exactly what we pursue in successful blockchain applications – technology becomes an enabling layer, making the entire ecosystem more efficient.

Their latest innovation YLDS represents another breakthrough: the first yield-bearing stablecoin registered with the U.S. Securities and Exchange Commission (SEC) that allows peer-to-peer transfers. This is not just a technological achievement, but a milestone in the regulatory field, paving the way for mainstream applications.

How Blockchain Creates Value for Figure

When Figure incorporates illiquid assets such as loans and their historical records into a shared ledger, a miracle happens. This transparency enables more rational pricing, improved information flow, and unprecedented asset management control. This is not just blockchain for the sake of blockchain, but rather using blockchain to address real inefficiencies in traditional finance.

The blockchain has crossed the chasm

This diagram proves that blockchain is being used in a real and practical way every day, representing a true upgrade to our existing financial system.

Consider the following data points:

• Stablecoins are driving application scenarios such as cross-border payments, internal fund flows, and remittances.
• Currently, 10% of remittances between the U.S. and Mexico are conducted through the cryptocurrency exchange Bitso, with most using stablecoins.
• The tokenized versions of stocks and other financial products are typically only available to the top 1% of the wealthy globally, but today they are enabling people everywhere to access them equally.
• Companies like Figure are innovating outdated processes such as loan origination by using blockchain as an enabling layer to reduce friction and costs.

Looking to the Future

Figure's IPO is not just a victory for one company—it validates our argument that the greatest impact of blockchain comes from improving real-world processes, rather than creating competing standalone financial systems.

As we continue to support the next generation of entrepreneurs in building transformative blockchain technology, Figure proves that the most valuable crypto companies are often those that make the existing world work better, rather than those that try to completely replace it.

The future of finance is being built, with real-world applications advancing step by step. The journey of Figure from a startup to a publicly listed company clearly illustrates this vision of the future.