Blockchain-based fintech Figure today announced the completion of a digital securities transaction using Figure ATS, an alternative trading system registered in the United States Security and Trade Commission and it’s part of Figure’s Marketplace trading platform.
The trade included the minting of a fiat marker by a US bank on a blockchain backed by fiat reserves, and the secondary trade of a private company on a blockchain.
“Until now, securities trading has been limited to a handful of legacy centralized exchanges that act as barriers to progress when it comes to offering a frictionless market for securities trading,” said Mike Cagney, co-founder and CEO of Figure. “We have demonstrated the ability to trade and settle shares of private companies in real time without counterparty or settlement risk, on blockchain and ultimately the ability to move centralized exchanges.”
Marketplace trading platform using Figure ATS enables real-time two-way transactions and immediate settlement of private company shares. This is a significant improvement over the current 60-plus day process for trading shares in private companies, the company said.
Figure completed its first secondary business in September. This event saved investors and employee shareholders more than 90 percent of the traditional costs associated with secondary trading. This translates to over $ 5,000 in savings per employee who participated in the transaction.
Figure said he expects Figure ATS to support dozens of secondaries with other private companies until the end of this year. Other assets will soon be available for trading on the ATS Figure, such as private equity fund interest, and other assets will soon follow on the Marketplace more broadly, such as loan transactions.
Along with this first business event, Figure participated in the creation of the new USDF Consortium, a developing syndicate of banks creating digital markers backed by the US dollar. The consortium is organized by JAM FINTOP and the Blockchain foundation of provenance. The consortium will operate under a common set of compliance standards to engage customers and create USDF digital markers for use in a wide variety of DeFi transactions.