Figure Markets aspires to be more than another crypto exchange — it’s built for users who want to put their digital assets to work. You can earn passive income, borrow against crypto, and trade when the time is right, all in one place. This guide explores everything you need to know about Figure Markets, including its products, yield potential, and other details.
KEY TAKEAWAYS
➤ Figure Markets is a self-custody platform for trading, borrowing, and earning through regulated blockchain-based products.
➤ It combines 0% fee trading, real yield products, and on-chain transparency using MPC and security entitlements.
➤ Challenges include geo-restricted features, limited token listings, and yield rates tied to market conditions.
- What is Figure Markets?
- What makes Figure Markets different?
- Figure Markets origins and leadership
- Regulated assets: A blueprint for compliant DeFi
- Jurisdictional structure: US and international access
- Figure Markets: Benefits vs. challenges
- Is Figure Markets the right platform for you?
- Frequently asked questions
What is Figure Markets?
Figure Markets is a blockchain-native financial platform spun out of Figure Technologies in 2024. It was created to support a broader range of tokenized assets — including real-world assets, digital securities, and crypto — on the Provenance Blockchain.
The platform is designed for regulated, on-chain finance with a focus on transparency, compliance, and user ownership.
Unlike traditional platforms, Figure Markets operates entirely on decentralized infrastructure. And by doing so, it paves the way for a new model of finance that merges institutional standards with DeFi accessibility.
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What makes Figure Markets different?
Figure Markets combines passive income, borrowing, and trading into one platform for both active and long-term strategies:
➤ Earn yield through products like Forward Vault, YLDS, and P2Prime.
➤ Borrow against crypto with transparent terms and no credit checks.
➤ Trade with zero fees, fast execution, and decentralized custody.
➤ Retain full self-custody while benefiting from centralized liquidity and on-chain transparency.
The platform runs on Provenance Blockchain, which powers on-chain settlement, verifiable asset tracking, and decentralized control. Here’s how each product works:
Forward Vault: Real-world yield on idle cash
Forward Vault allows you to earn up to 7% net yield by allocating cash into a fund backed by home equity lines of credit (HELOCs). These are established financial instruments used by banks for decades and are not speculative by nature.
| Here’s what you get:➤ Daily liquidity: Move or withdraw funds anytime ➤ No lockups: No minimum term or holding period ➤ Auto-investment: Idle balances are deployed into yield strategies automatically ➤ Passive earnings: No manual steps to start earning |
Returns are based on SOFR + 250 basis points minus a 0.5% management fee and 0.25% in expenses. Compared to stablecoins that sit idle or low-interest savings accounts, Forward Vault offers a structured upgrade for passive capital.
YLDS: A regulated, yield-bearing stablecoin
Most stablecoins don’t generate yield. YLDS changes that by offering the first SEC-registered, yield-bearing stablecoin on a public blockchain. It launched in February 2025 and is issued by Figure Certificate Company, a subsidiary of Figure Markets.
YLDS pays a net yield of SOFR minus 0.5% (3.8% as of April 2025), with interest distributed monthly in either YLDS or USD.
| Key advantages:➤ Self-custody: You hold your tokens—no centralized wallet risk ➤ Transferable: Peer-to-peer transfers 24/7 ➤ Daily accruals: Interest builds automatically every day ➤ Transparent backing: Secured by prime money market instruments |
You can buy or redeem YLDS in USD or stablecoins. Fiat off-ramps are available during U.S. banking hours. Unlike most stablecoins, YLDS functions as a regulated, income-producing asset.
P2Prime: Margin lending without complexity
P2Prime lets you lend out your USD, crypto, or stablecoins to margin traders — without trading yourself. In return, you can earn up to 11.9% as of April 18, 2025.
Key features:
➤ No trading experience needed
➤ Risk-managed lending
➤ Returns backed by margin activity
➤ Transparent lending terms
Traders usually borrow funds regardless of market direction. So, this way, you earn interest from their borrowing, not from market performance.
Crypto-backed loans: Borrow without selling
Figure Markets’ Crypto-Backed Loans (CBLs) let you borrow cash against BTC or ETH without needing to exit your position. This means you can stay invested while accessing liquidity — all in one platform.
Loan terms:
➤ Fixed rate: 12.5%–15% (12.5%–16.73% APR)
➤ Borrow up to 75% of your crypto’s value (dependant on the borrowers rate)
➤ Three-month terms
➤ No credit checks, no prepayment penalties, no rehypothecation
Deposit your crypto, select terms, and receive cash in your bank account. You can pay interest monthly or defer until maturity (with a fee). If your collateral value drops, you will receive a margin call and can either add more or repay early.
Decentralized MPC custody: Self-custody with centralized safeguards
Figure Markets uses multi-party computation (MPC) to protect your assets. MPC splits them into shares held by separate hosts instead of storing full private keys in one place.
How it works:
➤ Key shares are distributed across independent hosts
➤ Threshold signing ensures no one party can act alone
➤ Custom rules enforce safety (e.g., internal approval for large withdrawals)
➤ Backup systems are encrypted and decentralized
This setup offers institutional-grade security while keeping assets in your control.
Security entitlements (SEs): Legal and technical clarity
Each deposit or asset purchase creates a Security Entitlement (SE), a tokenized ownership record compliant with UCC Article 8. You hold SEs in a Figure Markets self-custody wallet, and they’re tied to underlying assets secured via MPC.
Why SEs matter:
➤ Always redeemable 1:1 for underlying assets
➤ Fully trackable on Provenance blockchain
➤ Publicly auditable
➤ Reduced risk of centralized mismanagement
You can trade SEs, transfer them, or redeem them for the associated assets. This legal clarity removes ambiguity around ownership — an issue common across crypto platforms.
Trading: Fast, transparent, and fee-free
Figure Markets delivers fast execution with decentralized settlement and 0% trading fees. This minimizes cost drag, especially for frequent or high-volume traders.
Key features:
➤ USD and USDC trading pairs
➤ Supported assets: BTC, ETH, HASH, SOL, LINK, UNI, USDC, XRP
➤ ACH and wire transfer support
➤ Off-chain order matching; on-chain Provenance settlement
Trades are publicly visible, cancelable anytime, and backed by transparent SE tracking.
Cross-collateralization: Unlock liquidity without selling
You can use SEs or crypto assets like BTC, ETH, USDC, or HASH as collateral for loans. The system places a hold on your collateral but keeps it in your custody. Once repaid, you regain full control.
This allows you to unlock liquidity from diversified holdings without giving up ownership or transparency.
Figure Markets origins and leadership
Figure Markets is a subsidiary of Figure Technologies, a fintech company founded by Mike Cagney and June Ou.
Cagney, now CEO of Figure Markets, also co-founded SoFi, one of the largest U.S.-based fintech lenders. With Figure Technologies, he led the development of blockchain-based loan origination and securitization.
The firm recorded over $30 billion in loans and real-world asset transactions on-chain through the Provenance blockchain.
Figure Markets carries this same DNA into the exchange space. The company aims to build the “Exchange for Everything” — a single decentralized platform for trading crypto, stocks, bonds, and tokenized real estate.
Its leadership team brings a unique combination of TradFi credibility and web3 experience. This gives them a different lens compared to most crypto-native startups.
Regulated assets: A blueprint for compliant DeFi
Figure has taken a novel approach to launching yield-bearing products within regulatory frameworks. One of the biggest examples is YLDS, the SEC-registered, yield-bearing stablecoin on a public blockchain.
YLDS was introduced as an SEC-registered public security — a first for stablecoins. It sets a precedent for how blockchain-based financial instruments can comply with U.S. law.
The platform’s upcoming tokenized REIT will operate similarly to conventional REITs but on-chain.
These moves reflect the company’s effort to work with regulators, not around them, and build long-term infrastructure for tokenized finance.
Team depth and funding
Figure Markets is led by a team with deep roots in fintech, crypto, and institutional finance. Alongside Mike Cagney, President June Ou plays a key role in platform development. The leadership includes executives with experience across traditional finance, blockchain, and U.S. compliance standards.
This mix of expertise shapes a product that feels both institutional-grade and crypto-native.
In early 2024, Figure Markets raised over $60 million in Series A funding. Backers included big names like Jump Crypto, Pantera Capital, and other major web3 and fintech investors. This round validated the platform’s business model and regulatory alignment.
Jurisdictional structure: US and international access
Another positive aspect of the company is that it maintains a public-facing U.S. headquarters in San Francisco (unlike offshore exchanges that hide behind shell structures).
The platform segments its offering between U.S. and international users. International users access a separate platform with a broader asset listing, similar to how other major exchanges operate dual entities.
This structure allows Figure Markets to meet jurisdictional requirements without compromising on access or compliance.
Challenges and considerations
Overall, Figure Markets offers a pretty decent and well-structured platform. That said, as always, there are still a few things you should consider before using it.
➤ Limited token variety (for now): If you are looking to trade dozens of niche tokens, you may find Figure’s asset listings limited. The platform currently supports a curated set of major coins. Broader access to altcoins might require using the offshore version, which is unavailable to U.S. users.
➤ Product access varies by region: Some offerings — like certain tokenized securities or REITs — are limited to users in specific jurisdictions. Availabilities may differ if you are outside the U.S.
➤ Yield rates are not guaranteed: YLDS and Forward Vault offer competitive returns, but rates can change based on macroeconomic conditions or changes to SOFR. Past performance does not lock in future returns.
➤ Relatively newer exchange: Although backed by an experienced team, Figure Markets is still relatively new as an exchange. It doesn’t yet have the multi-year track record of some larger platforms, so it’s important to watch how it scales.
➤ Regulatory complexity: While the platform embraces compliance, that also means stricter onboarding and KYC requirements.
Additionally, you should always review disclosures, especially when using new products like YLDS or crypto-backed loans. Full Figure Markets disclosures can be found here.
Figure Markets: Benefits vs. challenges
| Benefits | Challenges |
| Earn yield on idle cash through Forward Vault (up to 7%) | Token variety may be limited for some users |
| Hold YLDS to earn 3.8% interest while keeping liquidity | Product availability may depend on your region |
| Trade major assets with 0% fees | The exchange is relatively new, with a shorter track record |
| Borrow cash without selling BTC or ETH | Compliance-first design means full KYC/AML is mandatory |
| On-chain asset transparency through security entitlements | |
| Regulated broker-dealer and SEC-registered ATS structure (although no assets currently traded on ATS) | |
| MPC self-custody prevents centralized asset control | |
| One account for earning, borrowing, and trading |
Is Figure Markets the right platform for you?
Everything about Figure Markets appears to be designed for long-term alignment and durability. Its focus on SEC-compliant products like YLDS and the REIT fund shows a willingness to work within existing law, not skirt it.
To cut a long story short, so far, the platform seems to be addressing the biggest gaps in crypto — yield, compliance, and self-custody — without compromising ease of use. You can earn yield, access liquidity, and still catch market moves — all without moving funds across multiple platforms. That combination is rare. However, as with all investment-based platforms, using Figure Markets is not without risk. Always do your own research and never risk more than you can afford to lose.
Disclaimer: This article is for informational purposes only and should not be considered financial advice.
Frequently asked questions
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