Figure Technology Solutions began trading a tokenized version of its stock Thursday, marking a significant step toward bringing public equity markets onto blockchain rails. The modern stock token, dubbed FGRD, is available on Figure’s Onchain Public Equity Network (OPEN), bypassing traditional clearinghouses and custody systems, according to a statement from the company.
The move allows for instant settlement and built-in lending tools, offering investors a new way to access and utilize equity investments. FGRD transactions are recorded and finalized directly on a blockchain, designed to enable faster execution and programmable compliance, Figure said.
“Public equity still runs on decades-old market plumbing, and it simply doesn’t make sense anymore,” Mike Cagney, executive chairman of Figure, told CoinDesk. “By issuing FGRD natively onchain, we’re re-architecting the core infrastructure of capital markets to be real-time, transparent, and programmable, while removing layers of intermediaries that add cost, risk, and friction.”
Figure launched OPEN last month, stating its intention to be the first issuer to utilize the network, following the filing of a public registration statement last fall. Cagney previously described OPEN as a reinvention of equity trading, incentivizing companies to adopt the system due to its benefits over traditional centralized models. He noted that Figure has already originated over $20 billion in on-chain credit.
The launch of FGRD comes as the tokenization marketplace faces challenges beyond the technological capabilities. A recent report by PYMNTS indicated that while the technology behind asset tokenization largely functions as advertised – offering 24/7 operation and rapid settlement – liquidity remains a significant hurdle. Volumes are currently thin, and bid-ask spreads are wide, often relying on issuer discretion and off-chain legal processes for exits.
The report highlighted that many of the top tokenized real-world assets are commodity-backed stablecoins, rather than the financial derivatives needed for market scalability. It cautioned that “on-chain” does not automatically equate to “liquid,” and many tokenized RWAs may behave more like private instruments than tradable securities.
Figure’s offering similarly arrives amid a broader context of investor anxiety surrounding new IRS tax rules for cryptocurrency, as reported by CoinDesk. New rules compel crypto exchanges to issue a Form 1099-DA to the IRS, potentially leading to tax penalties for holders who have not accurately reported their crypto transactions.
Figure expanded its blockchain-based equity model with the FGRD launch, hinting that secondary trading for the token could initiate soon, according to Stocktwits.
