Investment Firm Sixth Street Infuses Crypto Lender with $200 Million Capital
In a strategic move, US investment management firm Sixth Street has invested $200 million in Figure Lending, a fintech platform that specialises in offering loans to both traditional and crypto investors. This investment marks a significant expansion for Sixth Street in the fintech sector and strengthens Figure's presence in the digital assets space.
The investment comes at a time of market volatility in the crypto sector, following Trump's announcement of trade tariffs for Canada, China, Mexico, and most recently the EU. Despite the short-term bearish run in the crypto market, Figure remains committed to leveraging blockchain technology to innovate across three key pillars: transactional, liquidity, and lending.
With this investment, Figure aims to expand its lending services further. The platform plans to delve into other lending markets and introduce advanced features such as smart contracts enabling cross-collateralization and unlocking decentralized funding opportunities for tokenized assets within Figure’s ecosystem.
One of the key innovations to emerge from this partnership is Figure's "Democratized Prime," a decentralized finance (DeFi) competitor to prime brokerage and warehouse lending markets. This service aims to provide a more accessible and democratized prime lending solution for a wider range of investors.
Another significant development is the growing adoption of Figure Connect, which facilitates investor participation from nearly 200 financial institutions in transactions worth billions of dollars. This platform has been instrumental in bridging traditional finance with blockchain infrastructure and capital markets.
The partnership with Sixth Street is part of a larger strategic joint venture committing over $2 billion in liquidity overall. This strengthens Figure's ability to bridge traditional finance with blockchain infrastructure and capital markets, thereby amplifying Sixth Street's involvement in the digital assets space as a key liquidity provider and investor in blockchain-enabled capital market solutions.
The collaboration has already resulted in the landmark $355 million securitization of mortgage assets rated by S&P Global Ratings—the first blockchain-based deal to receive such ratings across all bond classes. This collaboration is expected to enhance Sixth Street's footprint and influence in the rapidly evolving digital asset ecosystem.
Figure, founded by former SoFi Chief Executive Mike Cagney, has served more than 100,000 households in over 47 US states, according to its website. The platform primarily offers automated home improvement loans, business loans, and debt consolidation services. With the new investment, Figure plans to issue up to $2 billion in loans, further expanding its reach and services.
In summary, the investment from Sixth Street has fueled Figure Lending's advanced blockchain-powered lending services and deepened Sixth Street’s strategic position and assets under management in digital assets through this transformative partnership. As Figure continues to innovate and grow, it is poised to make a significant impact in the fintech and digital asset sectors.
[1] Source: Figure Lending Press Release, dated 24th February 2021 [2] Source: Sixth Street Press Release, dated 24th February 2021
- Amid market volatility in the crypto sector, Figure Lending, a fintech platform specializing in offering loans to both traditional and crypto investors, aims to expand its lending services further by delving into other lending markets and introducing advanced features, such as smart contracts enabling cross-collateralization, thanks to a strategic $200 million investment from US investment management firm Sixth Street.
- In the realm of technology, Figure Lending's "Democratized Prime" service, a decentralized finance (DeFi) competitor to prime brokerage and warehouse lending markets, is set to provide a more accessible and democratized prime lending solution for a wider range of investors, following the $200 million investment from Sixth Street, with the objective of significantly expanding Figure's reach and services.
