Figure Unveils OPEN: The Onchain Equity Network

Figure has announced the launch of OPEN, a groundbreaking platform designed to fundamentally alter the infrastructure of stock markets. This new system is not merely a digital replica of existing exchanges but a complete reimagining of how equity transactions are processed.

The core innovation lies in its onchain approach. Instead of relying on the fragmented and often slow legacy systems that currently govern Wall Street, OPEN moves critical financial operations directly onto a blockchain. This shift promises to streamline processes that have historically been bogged down by intermediaries and manual verifications.

By targeting the foundational elements of market activity—issuance, settlement, and lending—Figure is positioning OPEN as a comprehensive backend for the next generation of financial markets. The platform represents a direct challenge to the status quo, offering a unified solution built for speed and transparency.

The announcement signals a growing trend of blockchain integration into traditional finance, moving beyond cryptocurrencies to reshape the very equity structures that underpin the global economy.

The architecture of OPEN distinguishes itself by deliberately avoiding the replication of conventional stock trading mechanisms. While most fintech innovations attempt to digitize existing exchange models, Figure’s platform focuses on the plumbing of the market.

The platform is engineered to handle three critical pillars of the financial ecosystem:

• Issuance: Managing the creation and distribution of new equity shares.
• Settlement: Ensuring the final transfer of assets between buyer and seller.
• Stock Lending: Facilitating the borrowing and lending of securities.

By keeping these functions onchain, the system eliminates the need for many back-office operations that currently introduce delays and costs. This approach allows for near-instantaneous settlement, a significant upgrade over the T+1 or T+2 cycles common in traditional markets.

Furthermore, the OPEN platform creates a transparent ledger where all transactions are recorded. This visibility reduces counterparty risk and ensures that all participants have access to the same verified data, a stark contrast to the opaque nature of many current lending and settlement agreements.

Moving equity infrastructure to the blockchain offers distinct advantages that go beyond mere speed. The OPEN platform leverages the inherent properties of distributed ledger technology to create a more resilient and accessible financial system.

One of the primary benefits is the reduction of systemic friction. In traditional finance, the separation of trading, clearing, and settlement creates multiple points of failure. By unifying these processes on a single platform, Figure reduces the complexity and operational risk associated with equity management.

The implications for stock lending are particularly profound. Currently, the securities lending market is often opaque and accessible primarily to large institutional players. An onchain model could democratize access, allowing for more efficient matching of borrowers and lenders and potentially unlocking trillions of dollars in currently illiquid assets.

The platform is designed to handle issuance, settlement, and stock lending onchain, instead of replicating existing stock trading.

This strategic pivot highlights a nuanced understanding of market structure. Rather than competing with public exchanges for order flow, Figure is building the foundational rails upon which those exchanges—and their participants—can operate more efficiently.

The transition to an onchain model introduces several operational shifts that market participants should anticipate. The OPEN platform is not just a technological upgrade; it is a procedural overhaul.

Consider the lifecycle of a standard stock transaction under this new model:

1. Instant Verification: Ownership and transaction validity are confirmed by the network in real-time.
2. Atomic Settlement: The exchange of cash for securities happens simultaneously, eliminating settlement risk.
3. Automated Lending: Smart contracts manage the terms and return of borrowed shares, removing manual oversight.

This automation extends to issuance as well. Companies looking to issue new shares can do so through the platform with greater transparency and reduced regulatory overhead, potentially lowering the barrier to entry for capital formation.

The shift also impacts liquidity. By tokenizing equity and enabling instant settlement, assets that were previously locked in multi-day settlement cycles become immediately available for reinvestment or collateralization. This velocity of money could have significant macroeconomic effects.

The arrival of Figure’s OPEN platform poses a strategic challenge to incumbent financial infrastructure providers. From DTCC to major custodian banks, the middle- and back-office functions of Wall Street are now in the crosshairs of disintermediation.

If the platform gains traction, it could lead to a consolidation of services. Firms that currently charge fees for clearing, custody, and securities lending may find their value proposition diminished by a platform that automates these functions at a fraction of the cost.

However, adoption will not happen overnight. Regulatory approval and the integration of legacy systems remain significant hurdles. The SEC and other global regulators will need to establish clear frameworks for onchain equity management, particularly regarding investor protection and market surveillance.

Despite these challenges, the momentum toward blockchain adoption in traditional finance is undeniable. Major institutions are already experimenting with private ledgers for similar purposes. Figure’s OPEN platform represents one of the most ambitious attempts to date to replace the plumbing of the market rather than just painting a new coat of paint on the old pipes.

Figure’s introduction of the OPEN platform marks a pivotal moment in the convergence of blockchain technology and traditional finance. By targeting the core functions of issuance, settlement, and lending, the company is betting that the future of markets lies in transparent, automated infrastructure rather than faster versions of legacy systems.

The success of this initiative will depend on regulatory acceptance and the willingness of market participants to migrate to a new standard. However, the potential for reduced costs, increased speed, and enhanced transparency provides a compelling value proposition that is difficult to ignore.

As the financial world continues to digitize, the distinction between crypto and equity may blur, giving rise to a hybrid market structure. OPEN is positioned at the forefront of this evolution, offering a glimpse into a future where stock trading and lending are as seamless as sending an email.