Figure (FIGR)

We believe Figure is highly disruptive. If tokenisation of real-world assets is a theme for the next decade, FIGR could be at the centre of it.

Figure has found a real-world use for blockchain, proving it can reduce cost and time in HELOC origination by 90% (current 3% market share).

• FIGR’s technology has an average production cost per HELOC loan of $730

• The mortgage industry’s average loan production cost is $11,000.

• How is this production cost difference possible? Massive automation, and a blockchain.

The second part of the equation is FIGR provides a marketplace for selling pooled credit in connection with this low cost, blockchain-based origination engine.

FIGR will expand into other illiquid markets, providing standardisation, transparency, ‘truth’, and enabling liquidity in what have historically been less liquid markets.

Figure is in the early stages, yet has ~30% Op margins and incremental margins of 80%+.

Potential Upside:     $115 (+150%)

Sensible Downside: $30 (-35%)

Link To Research