Figure Technology is taking another bold step toward transforming capital markets. The company has officially filed for its second IPO, yet this time it plans to do something fundamentally different: issue blockchain native equity directly on the Solana blockchain. As the financial sector continues shifting toward digital rails, this approach signals a meaningful redesign of how equity can be issued, held, traded, and eventually integrated into decentralized financial ecosystems.

Although blockchain based securities have been discussed for years, very few companies with Figure’s scale have attempted to operationalize them within the constraints of U.S. regulation. Because the company already built Provenance Blockchain to support regulated financial assets, its decision to move to Solana for native equity issuance highlights a broader trend: fast, low-cost public blockchains are maturing to a point where real-world financial assets can rely on them without compromising compliance or throughput.
(Source: https://www.sec.gov)

Moving Beyond Traditional Equity Infrastructure

The traditional stock market is notoriously slow to upgrade. Even today, equities rely on legacy settlement systems like DTCC, which operate on decades-old rails. While these systems are reliable, they are not flexible. And because innovation often requires flexibility, companies looking for new forms of liquidity or investor engagement are increasingly searching for alternatives.

Figure’s decision to place its equity natively on Solana attempts to solve several long-standing issues in conventional markets. The company intends to allow investors to trade its shares onchain, meaning buyers and sellers can execute transactions with near real time settlement. Although settlement cycles have improved in recent years, the capital markets industry still tends to move slowly compared to modern decentralized networks.

Furthermore, since Solana processes thousands of transactions per second at extremely low cost, the platform is structurally attractive for tokenized financial instruments.
(Source: https://solana.com)

Enabling a New Liquidity Layer for Equity

Once equity is issued onchain, it becomes possible to unlock forms of liquidity that do not exist in traditional structures. Instead of restricted movement, compliance-gated markets, and multi day settlement cycles, blockchain native equity can flow more freely among eligible participants.

However, Figure is not suggesting an unregulated free-for-all. Instead, the company aims to combine the efficiency of blockchain rails with the oversight of U.S. securities law. Because Solana supports programmable compliance parameters, issuers are now able to embed restrictions directly into tokens themselves. This approach ensures that equities remain compliant while still benefiting from automation and speed.
(Source: https://www.coindesk.com)

The Path Toward DeFi Utility for Corporate Equity

One of the most ambitious parts of Figure’s plan is the integration of corporate equity into decentralized finance applications. While stablecoins and wrapped assets already flow through DeFi protocols, corporate stock has generally been absent due to regulatory complexity and technical limitations.

Figure believes its Solana based equity could eventually be used as collateral, traded in automated liquidity pools, or incorporated into permissioned lending frameworks. Because Solana supports complex smart contracts, the potential to integrate shares into decentralized protocols is expanding rapidly. Although Figure will need to work within regulatory constraints, the long-term vision is clear: corporate equity that actually participates in a digital financial system rather than sitting passively in brokerage accounts.

This shift aligns with a larger movement in blockchain markets, where real-world assets continue migrating onto public networks. Developers, institutions, and investors have all expressed interest in tokenized instruments that operate more freely than paper-based systems allow.
(Source: https://www.blockworks.co)

How Figure’s Approach Differs from Other Tokenization Experiments

While many companies have experimented with tokenized assets, most have taken a cautious approach. They often issue tokens that merely represent equity rather than serve as the equity itself. Figure is moving one step further by placing its stock directly on the blockchain as the authoritative version of ownership.

This distinction is important because it eliminates reconciliation gaps between offchain and onchain records. Hence, when someone owns Figure stock on Solana, that is the legally recognized record, not an unofficial mirror of a traditional registry. Because of this structural decision, the company must maintain extremely high technical reliability while still meeting regulatory disclosure obligations.

Although several financial institutions have launched pilot programs for tokenization, very few have attempted a publicly accessible equity issuance of this scale on a fast public chain like Solana. Banks generally favor private, permissioned blockchains, yet Figure is leaning toward openness, speed, and broad accessibility.
(Source: https://provenance.io)

Why Solana Was Selected for the IPO

Developers and enterprises often evaluate multiple blockchains before settling on one that meets their requirements. In Figure’s case, Solana was chosen because of its high throughput, low latency, and cost efficiency. These features matter when dealing with thousands of potential share transfers and compliance checks per second.

Additionally, the Solana ecosystem has grown rapidly, attracting developers, infrastructure providers, institutional partners, and liquidity networks. Because capital markets require robust, long-term reliability, choosing a chain with proven uptime and strong engineering support is essential.

Although Solana experienced notable outages in its early years, significant upgrades have improved network stability. Today, the chain can handle extremely high workloads while maintaining low transaction fees.
(Source: https://www.nasdaq.com/articles/solana-performance-updates)

The Regulatory Dimension

Because this involves a registered IPO, Figure must comply fully with U.S. securities regulations. The SEC filing shows the company intends to treat blockchain infrastructure as a technical layer, not a substitute for regulatory oversight. Investors will still go through the usual disclosure process, and transfer restrictions will remain in place when required by law.

Nevertheless, the company’s model brings new challenges. Regulators will need to understand how onchain equity behaves, how secondary trading works when automated by smart contracts, and how investor protections translate into code. Figure must also prove it can manage cybersecurity risks effectively because blockchain native assets are irreversible once transferred.

Despite these complexities, U.S. regulators appear increasingly open to tokenized assets when they operate within existing frameworks. The SEC has reviewed multiple blockchain related filings over the last three years, and the industry expects more companies to explore similar models.
(Source: https://www.sec.gov/news)

Implications for Retail and Institutional Investors

For retail investors, onchain equity could dramatically simplify the mechanics of owning and transferring stock. Instead of relying on brokerage accounts, custodial intermediaries, or settlement agents, investors may eventually hold shares directly in compliant digital wallets that enforce rules automatically.

Institutional investors, on the other hand, may view blockchain native equity as a new gateway to efficient settlement, reduced counterparty risk, and a more programmable financial environment. Because institutions frequently manage complex portfolios across multiple jurisdictions, onchain automation can reduce operational overhead and improve transparency.

Although adoption will likely occur gradually, the launch of Figure’s IPO will serve as a critical benchmark for how the market responds to blockchain based issuance from a well established fintech company.

How This Move Affects the Broader Capital Markets Landscape

When one company introduces a new model for equity issuance, competitors often evaluate its performance closely before adopting similar strategies. If Figure successfully executes its blockchain based IPO, other tech firms, financial institutions, and asset managers may pursue their own onchain structures.

Consequently, capital markets may gradually migrate toward hybrid systems that combine blockchain’s efficiency with traditional oversight. This evolution mirrors what is already happening with tokenized U.S. Treasury products, onchain money markets, and blockchain based settlement platforms tested by major banks.
(Source: https://www.reuters.com/technology)

Potential Risks and Operational Challenges

Although the model is compelling, it is not risk free. Figure must ensure that its smart contracts are secure, compliant, and capable of handling real equity transactions without interruption. Any failure could undermine investor confidence and attract regulatory scrutiny.

Furthermore, investors who are unfamiliar with blockchain may face a learning curve when setting up wallets, understanding compliance controls, or managing private keys. Because losing access to a digital wallet can create irreversible consequences, companies issuing blockchain native equity must implement robust recovery procedures that comply with securities regulations.

Additionally, market infrastructure for secondary trading must be carefully managed. Liquidity providers, custodial services, and broker dealer partners must support the system reliably to prevent market fragmentation or confusion.

A Measured, Realistic Take on the Road Ahead

Although this IPO represents a major step forward, it does not mean that all equities will immediately transition to onchain formats. Instead, Figure’s path will likely serve as a test case that informs best practices for future issuers.

If successful, this model could shape how companies approach capital formation, investor engagement, and liquidity. However, sustained success will require rigorous attention to technical reliability, clear regulatory coordination, and thoughtful investor education.

Because the broader financial industry is still early in its tokenization journey, Figure’s second IPO may be remembered as a meaningful milestone in the gradual transition toward digital, programmable securities.

Conclusion

Figure Technology’s plan to issue blockchain native equity on Solana represents a significant shift in how public companies might structure ownership in the digital era. By bringing equity into a programmable, transparent, and high speed environment, the company is challenging decades old assumptions about capital markets. Although challenges remain, this approach could eventually reshape how investors access, trade, and utilize corporate stock in decentralized financial ecosystems.

Sources:

https://www.sec.gov
https://solana.com
https://www.coindesk.com
https://www.blockworks.co
https://provenance.io
https://www.nasdaq.com/articles/solana-performance-updates
https://www.reuters.com/technology