Cryptocurrency lender experiences significant stock surge post-Nasdaq initial public offering, with share prices climbing by a substantial 24% from the offer price.
In a significant move for the burgeoning stablecoin sector, Figure Technologies, a blockchain-based platform for facilitating loans, made its debut on the Nasdaq last week, and its stock market price has since soared.
The initial surge in the stock market price of Figure Technologies, which debuted on the New York Stock Exchange in June, suggests that investors are eager to gain exposure to the emerging sector. Analysts view the company's Initial Public Offering (IPO) as one of the only ways for investors to tap into the stablecoin market.
Figure Technologies, founded by Mike Cagney in 2018, closed 24% above its IPO price on Thursday, at $31.11. Cagney, a former CEO of SoFi Technologies, has steered the company to a valuation of $6.58 billion.
The company, which has $11.7 billion in outstanding loans, has originated $16 billion in loans since its inception. Its platform takes a few days to facilitate loans, compared to months for most competitors, and the cost of taking out a mortgage through Figure Technologies is approximately $1,000, compared to $12,000 for traditional stock market methods.
Figure Technologies' CEO, Michael Tannenbaum, stated that the company demonstrates how blockchains can create more efficient stock markets for real-world assets. He believes that the company's IPO could help investors better understand concepts like tokenization.
The interest in Figure's Nasdaq debut indicates that investors believe digital assets will disrupt traditional financial services, according to Gerry O'Shea, head of global market insights at crypto asset manager Hashdex. O'Shea believes that Figure's IPO could advance narratives around tokenization among traditional investors.
The pop in Figure's stock market price is occurring during the busiest U.S. IPO week since 2021, according to Juan Leon, Bitwise Senior Investment Strategist. Leon stated that investors are excited about Figure's cash-flowing, real-world credit platform that is blockchain-enabled.
The recent passage of the GENIUS Act has removed key policy overhangs for crypto payments, tokenized credit, and capital-markets rails. This legislation could potentially facilitate more crypto-related IPOs in the U.S. in the near future.
Figure Technologies is the ninth major crypto firm to go public in the U.S. this year. On Friday, Gemini, a crypto exchange, will follow suit, giving the Winklevoss brothers a chance to ring the Nasdaq's opening bell.
In conclusion, Figure Technologies' successful Nasdaq debut and subsequent stock market price increase highlight the growing interest in blockchain-powered financial services. As more companies in the crypto sector go public, it seems clear that digital assets are poised to disrupt traditional financial services in a significant way.
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