Tech
Figure Markets Raises $60 Million to Build an “Everything Marketplace” for Cryptocurrencies
Blockchain based lending company Figure Technologies Inc. announced today the launch of Figure Markets Inc. with $60 million in new funding to build what the company called an “everything marketplace,” a single platform for investors to trade cryptocurrency, stocks and alternative investments using blockchain technology.
The Series A round was led by Jump Crypto, Pantera Capital and Lightspeed Faction, with participation from Distributed Global, Ribbit Capital and CMT Digital.
Figure Technologies is best known for creating a blockchain-based lending and borrowing platform and distributed ledger blockchain system known as Provenance. Provenance can be used to tokenize real-world financial assets such as stocks, bonds, stocks, loans, real estate, and other financial vehicles into crypto assets so they can be tracked as blockchain tokens.
Figure Markets will be built on the Provenance blockchain and function as a cryptocurrency exchange allowing users to buy, sell and trade assets native to the blockchain, such as tokenized financial assets, using decentralized custody, the company said. It also intends to use so-called multi-party computing technology, which allows wallets to be protected via multi-party keys distributed among multiple people so that a transaction cannot occur without the approval of multiple people. This reduces potential fraud and risk when you need to confirm a large transaction or event.
Although ordinary exchanges mainly deal in blockchain-based cryptocurrencies such as bitcoin and Ethereum, Figure Markets wants to offer investors the opportunity to also capture markets that are not normally open such as stocks and shares. With the ability to also use distributed blockchain-based transactions, instead of centralized settlement, the company said it would set itself apart from exchanges such as Binance Holdings Ltd. and Coinbase Inc.
“Figure Technologies is realizing real benefits using blockchain in its lending and capital markets operations,” said Mike Cagney, managing director of Figure Markets. “Our goal is to extend the benefits of blockchain to a broader range of assets, including cryptocurrencies and securities. It’s ironic that the largest cryptocurrency exchanges aren’t on blockchain – we aim to change that.”
The company said Provenance and Figure Technologies’ blockchain have already proven themselves with more than $30 billion in real assets registered on the network since the network’s launch in 2018.
Figure Markets also said it is working to create a “registered security alternative” to stablecoins for its system. Stablecoins are a type of cryptocurrency that maintains one-to-one value parity with a traditional currency such as the US dollar. Stablecoins such as USD Coin and Tether maintain a price of $1 per token, this makes it a digital currency equivalent to cash and useful for exchanging with other cryptocurrencies for exchange-to-exchange trading due to its extremely low volatility.
“I believe Figure Markets is poised to become a disruptive force in the digital assets industry,” said Dan Morehead, founder and managing partner of Pantera Capital. “The company’s innovative use of MPC technology addresses pain points in the current market structure, helping to create a more efficient and secure future for digital assets.”
Image: Pixabay
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