Ex-SoFI CEO's Startup Closes $1 Billion Credit Line on a Blockchain

Figure Technologies, a fintech startup founded by former SoFi CEO Mike Cagney, has closed a $1 billion "Uncommitted" line of credit on a blockchain.

Investment bank Jefferies and WSFS Financial Corporation, the parent of WSFS Bank, are the project's participants, Figure announced Thursday.

As part of the deal, Jefferies may periodically lend to Figure under a variable funding note, which is secured by Figure's home equity lines.

A maximum loan amount that can be borrowed as needed, paid back, and borrowed again.

Figure's financing facility is custodied on its own blockchain platform called Provenance, according to the announcement.

"It paves the way for the first securitization on chain, which will demonstrate the massive cost savings, risk reduction and liquidity benefits blockchain delivers."

If the prospective securitization deal closes, it will become the first asset-backed security transaction with loans originated on a blockchain platform, said WSFS' senior vice president and director of corporate trust, Kristin Moore.

Figure Technologies is backed by notable investors, having raised $65 million.

Founded last year, Figure launched its home equity loan product in October and it utilizes the Provenance blockchain.

The firm claims to provide loan approval in "As little as five minutes" and funding within five days.