Mike Cagney, CEO of Figure Markets, clarified in a recent interview how conventional assets like stocks and real estate are being tokenized and introduced into the decentralized finance (DeFi) ecosystem. His observations indicate a time when blockchain will be a fundamental layer for conventional financial products rather than only a playground for crypto natives.
Crossing DeFi and TradFi via Provenance Blockchain
Figure’s mission revolves around the Provenance Blockchain, a purpose-built network enabling flawless tokenized form transfer and safekeeping of real-world assets ( RWAs). Cagney says Provenance already supports billions in real assets, including institutional loans, private equity, and home equity lines of credit (HELOCs).
Provenance is designed for compliance and openness, unlike some Layer-1 chains that sometimes lack institutional-grade infrastructure, therefore facilitating regulated bodies’ involvement. Real asset onboarding into the DeFi ecosystem depends on this infrastructure to guarantee that they satisfy legal and technical criteria.
Stocks and Equities Arriving on the Scene
One of the next major plays, according to Cagney, is tokenizing equities. The figure allows broker-dealers to create tokenized stocks that can be exchanged and used as collateral in DeFi systems via a subsidiary known as Digital Prime Technologies. Equity-based lending, fast settlement, and 24/7 markets—benefits not available in conventional markets—are thereby opening doors.
An investor might theoretically borrow a stablecoin or earn yield in a liquidity pool using tokenized Apple shares as security, for instance. In the conventional system, where siloed institutions impede innovation and settlement times, this kind of adaptability is not conceivable right now.
What Does This Approach Signify?
Many DeFi projects have teetered on RWAs, but Cagney’s approach differs in one key respect: regulatory-first thinking. Figure is not dodging the system; rather, it is improving the current financial institutions by working with them and designing around compliance firsthand.
Scalability is also another important difference. Provenance runs with very low petrol costs and a consensus model best fit for financial activities. This makes it practical for high-volume use applications, including mortgage securitization, cap table management, and primary capital markets.
The Larger Picture is DeFi Maturing
Cagney’s point of view emphasizes a bigger story in DeFi, which is the progression from speculation to utility. While yield farming and token swaps were defined early by DeFi, the following generation concentrated on creating real-world applications. Not only is it fascinating but tokenized RWAs and equities are necessary for DeFi to make it through the long term.
DeFi becomes more than an experiment when assets like home loans, private credit, and stocks can exist on-chain. With increased efficiency, openness, and access, it starts to take front stage as a major substitute for conventional finance.
Many in the DeFi space have dreamed about but struggled to realize the road Mike Cagney and Figure are mapping. Their combination of creative financial tools with compliance-ready infrastructure is transforming the promise of real-world DeFi into a real-world reality. The future of finance might not be one in which crypto replaces Wall Street but one in which they at last cooperate.
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