Feature Technologies, a fintech startup founded by former SoFi CEO Mike Cagney, has closed a $1 billion “uncommitted” line of work of credit on a blockchain.
Investment bank Jefferies and WSFS Financial Corporation, the parent of WSFS Bank, are the project’s sharers, Figure announced Thursday.
As part of the deal, Jefferies may periodically lend to Figure under a variable funding note, which is secured by Role’s home equity lines. WSFS Financial is acting as trustee for Jefferies.
Lines of credit have a maximum lend amount that can be borrowed as needed, paid back, and borrowed again. Figure’s financing facility is custodied on its own blockchain stage called Provenance, according to the announcement.
The platform can support “the entire end-to-end financing of loans, from origination to scratching to servicing to financing,” said Cagney, adding:
“It paves the way for the first securitization on chain, which will demonstrate the bulky cost savings, risk reduction and liquidity benefits blockchain delivers.”
Brian McGrath, head of the securitized markets platoon at Jefferies, commented on using the blockchain:
“We’ve gained full transparency into the underlying assets, real-time access to advance performance and the process of accepting collateral has less friction than off chain.”
If the prospective securitization deal closes, it transfer become the first asset-backed security transaction with loans originated on a blockchain platform, said WSFS’ elder vice president and director of corporate trust, Kristin Moore.
Figure Technologies is backed by notable investors, partake of raised $65 million in a Series B round from Morgan Creek and others earlier this year. The firm’s in vogue total equity funding stands at over $120 million.
Founded last year, Figure launched its deeply equity loan product in October and it utilizes the Provenance blockchain. The firm claims to provide loan approval in “as youthful as five minutes” and funding within five days.
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