Figure's OPEN Platform: A Paradigm Shift in Stock Tokenization

Blockchain technology is beginning to reshape the fundamental structure of financial markets. One of the most significant steps in this transformation is the OPEN (On-Chain Public Capital Network) platform launched by Figure with the support of BitGo and Jump Trading. Officially announced last week, this new trading and issuance network is set to challenge the centralized structure of equity markets and expand the boundaries of the tokenization trend.

As a company that brings blockchain solutions to traditional finance and is led by Mike Cagney, founder of SoFi, Figure is reinforcing its pioneering position in this field. The OPEN platform operates on Provenance Blockchain infrastructure, enabling companies to directly issue and trade shares on the blockchain. This structure bypasses traditional intermediaries like the Depository Trust and Clearing Corporation (DTCC), fundamentally changing the transaction processes in markets.

Technical Infrastructure of the OPEN Platform: A Decentralized Trading Mechanism

The platform’s architecture provides continuous trading through a limit order book mechanism integrated with Figure’s Alternative Trading System (ATS). Unlike traditional centralized exchanges, this solution maximizes transparency and decentralization. Shares are stored and managed directly on the blockchain infrastructure, radically simplifying custody and tracking processes.

Another critical aspect of the system is that users can use their assets as collateral within DeFi (Decentralized Finance) infrastructure. This allows investors to reduce dependence on traditional brokers and conduct lending and borrowing directly on the blockchain. As a result, access to financial services becomes cheaper and transaction times are accelerated.

The Critical Role of BitGo and Jump Trading: Liquidity and Security Instincts

The success of Figure’s initiative relies on the support of industry leaders like BitGo and Jump Trading. BitGo, known for providing the most secure solution for institutional-grade crypto asset custody, ensures the safe storage of assets on the OPEN platform. Jump Trading provides the necessary liquidity support to keep the market liquid and facilitate effective price discovery.

These partnerships guarantee that the platform is built on a solid foundation not only technically but also economically and operationally. The participation of liquidity providers means investors can open and close positions comfortably, enabling the platform to function as a true market.

Figure’s Pilot Implementation: The First Company to Tokenize Its Shares

As part of its strategy, Figure will be the first company to tokenize its shares on the OPEN platform. Following the secondary equity offering application made last year (November), it is planned that the existing shares traded on Nasdaq will be exchangeable for blockchain-based recorded shares. This move is a symbolic step to demonstrate the reliability of the technology and to instill confidence among market participants.

Transition to the Late Stage of the Tokenized Equity Market

Figure’s OPEN initiative is positioned within a broader market context. The market for tokenized shares is part of the trend of transferring real-world assets (RWA) onto the blockchain. Data from RWA.xyz shows that, earlier this year, the market value of tokenized shares reached approximately $870 million, with monthly trading volumes exceeding $2 billion.

However, most products in the current market function as token wrappers around existing shares rather than issuing new shares directly on the blockchain infrastructure. In this context, Figure’s OPEN platform has the potential to be the first large-scale experience of truly native (blockchain-born) equity transactions.

Regulatory Environment: SEC’s Open Attitude Toward Tokenization

Market growth projections are supported not only by technological advancements but also by regulatory backing. SEC Chairman Paul Atkins explicitly stated that tokenization could “restructure the financial system within the next few years,” emphasizing benefits such as increased transparency, reduced risks, and closing trading gaps. This open and supportive regulatory rhetoric paves the way for rapid growth of initiatives like Figure.

The tokenization trend is expected to extend beyond equities to include bonds, real estate, and other financial instruments in the near future. In this context, Figure’s OPEN platform is positioned as one of the pioneering projects laying the infrastructure for the upcoming financial era.