Pantera Partners: Why We're More Bullish on RWAs Than Ever

Author: Paul Veradittakit, Managing Partner of Pantera Capital; Translated by Shaw Jinse Finance

Summary

• Figure Technologies' IPO marks a significant shift in the blockchain industry toward real-world applications, solving practical financial problems like home equity loans.

• Figure's success is attributed to its ability to streamline traditional financial processes, such as shortening loan cycles, and fostering network effects through its marketplace model (Figure Connect) and regulatory milestones such as YLDS.

• Figure's IPO demonstrates that blockchain's true value lies in enhancing the existing financial system, not replacing it entirely.

Figure Technologies' successful IPO is a watershed moment for the blockchain industry. We are incredibly excited about this and look forward to its impact on the future of finance. The Power of Real-World Blockchain Applications At Pantera, we've always believed that the most transformative use cases for blockchain are those that directly impact the real economy. Figure perfectly embodies this philosophy. While much of the cryptocurrency space focuses on speculation and financial engineering, Figure is solving real problems for everyday Americans who need to gain equity in their homes. The data speaks for itself. Figure has revolutionized home equity lending, reducing loan cycles from 30 days to just 5. They've facilitated over $17 billion in loans and processed over $50 billion in public blockchain transactions. As the largest non-bank home equity line of credit (HELOC) lender in the United States, they're more than just a crypto startup—they're a full-fledged financial services company that just happens to be powered by blockchain technology. The network effect is real. What excites me most about Figure's growth is their transition to a marketplace model. Today, 170 third-party institutions are originating loans through Figure Connect. This kind of network effect is exactly what we're looking for in successful blockchain applications—technology becomes an enabling layer, making the entire ecosystem more efficient. Their latest innovation, YLDS, represents another breakthrough: the first SEC-registered, peer-to-peer, yield-generating stablecoin. This isn't just a technological achievement; it's a regulatory milestone, paving the way for mainstream adoption. How Blockchain Creates Value for Figure When Figure brings illiquid assets like loans and their historical records onto a shared ledger, magic happens. This transparency enables better pricing, improved information flow, and unprecedented control over asset management. This isn't blockchain for blockchain's sake; it's using blockchain to address real inefficiencies in traditional finance. Blockchain Has Crossed the Chasm This figure demonstrates that blockchain is being used in real, practical ways every day, representing a genuine upgrade to our existing financial system. Consider the following data points: Stablecoins are driving use cases like cross-border payments, internal money flows, and remittances. Currently, 10% of remittances between the US and Mexico go through the cryptocurrency exchange Bitso, with the majority using stablecoins. Tokenized versions of stocks and other financial products, typically available only to the world’s richest 1%, are now making them equally accessible to people everywhere.

Looking Ahead

Figure’s IPO is more than a win for one company – it validates our thesis that blockchain’s greatest impact will come from improving real-world processes, not from creating competing, independent financial systems.

As we continue to support the next generation of entrepreneurs building transformative blockchain technology, Figure proves that the most valuable crypto companies are often those that make the existing world work better, not those that try to replace it entirely. The future of finance is being built, and real-world applications are being implemented step by step. Figure's journey from startup to public company clearly illustrates this future.