Figure Launches OPEN Blockchain Network To Revolutionize Public Equity Trading
Introduction
Figure Technology Solutions has unveiled a revolutionary platform designed to allow companies to list their public equity directly on blockchain infrastructure. This platform, known as the On-Chain Public Equity Network, or OPEN, represents a significant departure from traditional equity issuance and trading practices. By leveraging blockchain technology, OPEN aims to create a more efficient, transparent, and accessible system for companies and investors alike. Unlike tokenization initiatives that simply digitize existing securities, OPEN enables companies to issue blockchain-native equity, providing a fundamentally new way to interact with public markets.
The Strategic Vision Behind OPEN
The core vision of Figure’s OPEN platform is to modernize public equity markets by removing unnecessary intermediaries and enabling real-time interaction between investors and companies. Traditional public markets rely heavily on centralized systems such as clearinghouses and custodians, which introduce operational delays, added costs, and limited flexibility. OPEN eliminates many of these barriers by registering equity directly on the blockchain, allowing for near-instantaneous settlement of trades and streamlined record-keeping.
A key aspect of Figure’s strategy is the integration of decentralized finance principles into traditional equity markets. Through its Democratized Prime protocol, OPEN allows shareholders to lend or borrow their shares directly without relying on traditional prime brokers. This peer-to-peer lending and borrowing capability introduces more liquidity into the market and empowers shareholders to capture economic benefits that were previously restricted to institutional intermediaries. The platform’s design encourages greater participation from a diverse set of investors while maintaining regulatory compliance and market integrity.
How OPEN Works: Key Features?
The OPEN platform incorporates multiple features that distinguish it from traditional equity systems and existing tokenization models.
Blockchain Registry of Equity
OPEN registers equity directly on the blockchain rather than creating digital tokens representing shares held in traditional depositories. Each transaction, ownership change, and dividend payment is recorded in a distributed ledger that ensures transparency and immutability. This registry reduces reliance on multiple intermediaries, lowers operational costs, and minimizes the risk of reconciliation errors common in legacy systems.
Alternative Trading System
OPEN includes a blockchain-based alternative trading system with a limit order book structure similar to conventional exchanges. Investors can place buy and sell orders continuously, allowing for dynamic price discovery and market liquidity. The blockchain infrastructure ensures that settlement occurs instantly once trades are executed, eliminating the delays associated with traditional trade clearing processes.
Decentralized Finance Integration
The Democratized Prime protocol embedded in OPEN allows shareholders to lend or borrow shares without engaging traditional financial intermediaries. This decentralized approach to stock lending and borrowing opens opportunities for retail and institutional investors alike, enabling them to participate in financial mechanisms that were previously accessible only to prime brokers and large institutions.
Custody and Market Maker Support
To support liquidity and ensure secure custody, OPEN incorporates services from qualified custodians and engages professional market makers. These arrangements ensure that investors can safely hold blockchain-registered equity while maintaining market depth and continuous trading functionality. This combination of decentralized technology and professional market infrastructure is designed to facilitate adoption by both companies and investors.
Figure as the First Issuer on OPEN
In a demonstration of confidence in its technology, Figure Technology Solutions has announced plans to be the first issuer on the OPEN platform. The company intends to conduct a secondary equity offering using blockchain-native shares, providing a real-world test of the platform’s functionality. By maintaining exchangeability between blockchain-registered shares and existing traditional equity, Figure aims to provide liquidity continuity and investor confidence in both systems.
Being the first issuer also positions Figure as a first mover in the emerging field of blockchain-native public equities. This pioneering approach highlights the potential for blockchain technology to transform capital markets by offering faster settlement, greater transparency, and innovative financial products. Figure’s execution plan reflects careful consideration of both technological and regulatory requirements, ensuring that the platform operates within the existing legal frameworks governing public markets.
Strategic Implications For Public Markets
The launch of OPEN carries several important implications for companies, investors, and the broader financial ecosystem.
Reducing Barriers to Entry
By minimizing reliance on centralized clearing and settlement agents, blockchain-native equity can reduce operational costs and streamline access to public markets. Smaller companies that have traditionally faced high costs and complex compliance requirements may find it easier to raise capital using OPEN, potentially democratizing access to public equity issuance.
Improving Market Transparency and Efficiency
Blockchain’s inherent transparency allows investors, regulators, and companies to access real-time ownership and transaction data. This transparency can reduce errors, increase market confidence, and improve price discovery, ultimately creating a more efficient and resilient market ecosystem.
Enabling New Financial Products
The integration of decentralized finance protocols introduces possibilities for new financial products, such as peer-to-peer stock lending and borrowing, automated dividend management, and programmable equity rights. These innovations expand the ways investors can interact with public markets and provide companies with new tools for managing capital and shareholder engagement.
Navigating Regulatory Challenges
While the technology provides significant advantages, blockchain-native equities remain subject to regulatory oversight. Compliance with securities laws and investor protection rules will be critical for adoption. Figure’s platform is designed to balance innovation with regulatory compliance, but the long-term adoption of blockchain-based equities will depend on clear regulatory guidance and ongoing collaboration with financial authorities.
The Broader Market Impact
OPEN represents a convergence of blockchain technology and traditional capital markets infrastructure. By providing a fully on-chain platform for equity issuance and trading, Figure is setting a precedent for other companies to explore blockchain-native capital markets. If widely adopted, the platform could transform how public markets operate, creating faster, more efficient, and more inclusive financial ecosystems.
The platform also has the potential to influence market structures globally. By demonstrating that blockchain can safely and efficiently handle public equity transactions, OPEN may encourage regulators, exchanges, and financial institutions to explore additional blockchain-based solutions. This could lead to a gradual redefinition of traditional market practices, with blockchain serving as a backbone for faster settlement, improved transparency, and innovative financial products.
Conclusion
Figure Technology Solutions’ launch of the OPEN platform marks a critical step toward integrating blockchain technology into mainstream financial markets. By allowing companies to issue and trade blockchain-native equity, OPEN addresses inefficiencies in settlement, reconciliation, and access while enabling new financial products that democratize market participation. The combination of decentralized finance features, blockchain registry transparency, and institutional-grade support creates a unique market infrastructure capable of transforming public equity trading.
