Figure Markets Review: Competitive Yields for the Retail Investor?

The crypto yield market has been filled with platforms that promised safe returns based on opaque algorithmic trading or rehypothecation. Figure Markets has built something more transparent and dependable – a bridge between the $50 trillion residential real estate market and the digital asset economy.

Backed by Figure Technology Solutions, Inc., Figure Markets is a marketplace platform built on top of the Provenance Blockchain, which includes opportunities that let retail investors access yield generated by real-world assets (RWAs), specifically Figure Lending Home Equity Lines of Credit (HELOCs). Figure Lending is the #1 non-bank HELOC lender in the U.S.

We reviewed Figure Markets to see if its Democratized Prime and Crypto-Backed Loans live up to the commitment of bringing institutional-grade finance to the average investor. The platform rejects the “black box” model of CeFi lenders in favor of a transparent, on-chain order book that allows users to retain custody of their assets.

With the 2025 launch of its SEC-registered yield-bearing stablecoin (YLDS) and a lending engine that cuts out the banking middleman, it is a compelling proposition worth exploring.

Our Figure Markets review will see how the Dutch Auction yield system works, scrutinize the costs of their liquidation protection, and determine if the friction of strict KYC is worth the 8.5% APY.

Key Takeaways from Our Figure Markets Review

What is Figure Markets?

Figure Markets is the digital asset arm of Figure Technology Solutions, Inc., a fintech company founded by Mike Cagney (who also founded SoFi). Figure Markets was born out of a massive existing lending business, and Figure Lending, LLC (a wholly owned subsidiary of Figure Technology Solutions, Inc.) is the largest non-bank HELOC lender in the U.S., having originated over $20 billion in loans on the Provenance Blockchain.

In recent years, Figure Technology Solutions has appeared on several industry rankings, including the Forbes Fintech 50 and Fast Company’s World’s Most Innovative Companies list for 2024 and 2025.

The core of Figure Markets is “Democratized Prime.” In traditional finance, prime brokerage services, like lending against assets at low rates or earning high yields on cash, are typically reserved for institutions. Figure Markets uses the Provenance Blockchain to cut out intermediaries, so that retail investors can lend directly into the pool of assets that banks usually fight over. In 2025, Figure was estimated to hold around 75% of the market for tokenized RWAs.

The platform uses a centralized matching engine for speed but settles transactions on-chain. Crucially, it employs a “self-custody by design” philosophy using MPC wallets, meaning the exchange does not commingle customer funds with its own operational capital.

Democratized Prime: The Yield Engine

The flagship feature of Figure Markets is Democratized Prime. When you deposit funds into Democratized Prime, you are essentially acting as the bank. You lend your assets (USDC, USD, YLDS or Crypto) to a borrower directly, lending against a pool of assets such as HELOCs (Home Equity Lines of Credit) or crypto-backed loans.

While Figure handles the borrower matching process, collateral management, and interest collection, you are the only one in charge of your funds. Borrowers receive interest rates that are competitive with warehouse lines offered by the banks, and lenders receive the interest previously reserved for the banks and prime brokers.

The yield comes from real borrowers paying interest on their loans. Figure’s HELOCs are often securitized and rated AAA by agencies like S&P and Moody’s. Previously, only large banks could buy these debt packages, but Figure Markets employs blockchain technology to put these loans onchain, allowing retail users the ability to lend directly to creditworthy borrowers through the Democratized Prime platform.

The Dutch Auction Model:

Unlike a savings account with a fixed rate, Democratized Prime uses a Dutch Auction system.

• Lenders (You): You set the minimum interest rate you are willing to accept.
• Borrowers: The system matches your capital with borrowers willing to pay that rate.
• Clearing: The market clears hourly. If your rate is competitive, your capital is deployed, and you earn interest paid out hourly. Most lending utilizes YLDS, so lenders still earn the passive yield (SOFR minus 35bps) while their YLDS remains unmatched.

Current Performance: As of early 2026, yields on the platform have hovered around 8.5% APY for the HELOC-backed pools. This is significantly higher than Treasury bills or high-yield savings accounts, reflecting the risk premium of private credit, but backed by collateral (homes) that is far more tangible than algorithmic stablecoins. Yield is not derived from token inflation or opaque trading strategies, but instead comes from the payments of real borrowers paying down their loans over time.

Crypto Backed Loans

For users who want liquidity without selling their Bitcoin, Ethereum, or Solana, Figure offers Crypto Backed Loans. These are designed to be a lower-cost alternative to credit cards or personal loans, leveraging the user’s crypto holdings.

Rates and Terms:

• Interest Rate: Rates start at 8.91% (9.999% APR²).
• LTV (Loan-to-Value): The best rates are available at 50% LTV. This means if you deposit $10,000 in BTC, you can borrow $5,000 in cash.
• Max LTV: Users can borrow up to 75% LTV, though this comes with a higher interest rate (11.50% (12.62% APR²)).

The Liquidation Protection is an excellent feature from Figure (although only available in the states of CA, NY, FL, PA, AL, AK, GA, HI, MA, UT). In standard DeFi lending (like Aave) or CeFi exchanges, if the price of Bitcoin drops 1% below your liquidation threshold, your assets are instantly sold, often at the bottom of the market.

Figure offers Liquidation Protection as an add-on.

• How it works: For an upfront, non-refundable 2% fee, Figure agrees not to perform margin calls or liquidations based on price movement during the term of the loan.
• The Benefit: Instead of an instant wipeout, you defer interest, margin calls, and liquidations to the end of the loan term.

Is Figure Markets Safe?

Safety in crypto is relative, but Figure Markets scores highly with us on structural integrity.

MPC Custody

Figure Markets uses Multi-Party Computation (MPC) technology. When you deposit funds, they do not go into a massive “Figure Markets Hot Wallet.” Instead, the private key to your wallet is split into multiple shards and, to move funds, a quorum of shards is required.

This means Figure Markets cannot unilaterally move your funds without your authorization, and a hacker cannot drain the exchange by compromising a single server.

Regulatory Standing

• SEC Registration: The platform’s native yield-bearing stablecoin, YLDS, is registered with the SEC. This is a massive regulatory moat that few competitors have been able to cross.
• Broker-Dealer: Figure Securities, Inc. is a FINRA-registered broker-dealer and an SEC-registered Alternative Trading System (ATS), which features the first blockchain-native equity registered with the SEC (FGRS).
• Provenance Blockchain: All assets are tracked on the Provenance Blockchain, a public, open-source chain. This provides continuous transparency into whether the assets are available, rather than a periodic snapshot.

Audits

Unlike DeFi protocols that rely on code audits from firms like Certik to prevent smart contract exploits, Figure relies on legal and regulatory audits. The “audit” here is the continuous on-chain verification of the Provenance Blockchain, combined with oversight by US regulators (SEC/FINRA). The reliance on institutional-grade infrastructure is reassuring.

Figure Markets Fees

Figure Markets uses a low-fee model to attract liquidity, monetizing the lending spread.

The low trading fees here are excellent, although we note liquidity on Figure Markets may be lower than on Binance or Coinbase, potentially leading to slightly wider spreads (the difference between buy and sell prices).

User Experience & Onboarding

Figure Markets is a US-regulated platform, and it feels like one.

The KYC Barrier:

You cannot use Figure Markets anonymously. Onboarding requires a full Know Your Customer (KYC) check, including government ID and facial recognition and is non-negotiable. If you are looking for “no-KYC”, this is not the platform for you.

The Interface:

The dashboard is clean, professional, and utilitarian. It lacks the gamified elements of Robinhood or the complex technical charts of a pro-trading terminal, but it is designed for investors who want to click “Lend,” set a rate, and walk away. There is a Pro-Trade version on the desktop for institutions that are more used to accessing digital platforms using their computers.

Mobile Experience:

The Figure Wallet app is required to interact with the platform (due to the MPC security model). The app serves as your key to sign transactions. In our testing, the pairing process between the desktop exchange and the mobile wallet was smooth, though it adds an extra step compared to a standard username/password login.

Disclosures:

Rates as of 03/09/2026. Rates or returns associated with Democratized Prime are not fixed or guaranteed and may vary based on pool composition, borrower performance, auction dynamics, and prevailing market conditions.

Democratized Prime lending arrangements are not bank deposits, savings accounts, certificates of deposit, or money market funds and are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any governmental or bank regulatory authority. Funds allocated to Democratized Prime are used in lending or investment activities and are subject to risks, including borrower credit risk, liquidity constraints, and potential loss of principal. Rates and returns in Democratized Prime are market-based and variable and may differ materially from the fixed or insured returns associated with bank deposit products. Bank deposit products generally provide principal stability and federal deposit insurance within applicable limits; Democratized Prime does not provide these protections. Users should evaluate the distinct risk and regulatory characteristics before allocating funds.

Figure Technology Solutions, Inc. has filed a registration statement (including a prospectus) with the SEC for the proposed secondary offering of Series A Blockchain Common Stock discussed here. Before you invest, you should read the prospectus in that registration statement and other documents Figure has filed with the SEC for more complete information about Figure, the blockchain stock, risks, terms (including discount mechanics, HASH token bundle, conversion to Class A common stock, and trading on our ATS), and this offering. You can get these documents for free by visiting EDGAR on the SEC website at www.sec.gov (search for “Figure Technology Solutions” or filing date Nov 2025 onward) or at investors.figure.com. Alternatively, contact us directly.

This communication is not an offer to sell nor a solicitation of an offer to buy securities. Any offer will be made only by the prospectus when effective. Investing in blockchain-native securities involves significant risks, including potential loss of principal, volatility, blockchain/technology risks (e.g., smart contract, wallet/onboarding, Provenance network issues), regulatory uncertainties, limited liquidity initially, and no guarantee of discount/availability/allocation. Features like borrowing/lending on Democratized Prime, yield on $YLDS, or HASH utility depend on platform terms and market conditions—past/illustrative performance is no guarantee of future results. This is not investment, financial, or legal advice. Consult professionals.

©2026 Figure Lending LLC

Figure Lending LLC dba Figure 650 S. Tryon Street, 8th Floor, Charlotte, NC 28202. 888) 819-6388. NMLS ID 1717824. For licensing information go to www.nmlsconsumeraccess.org. Equal Opportunity Lender Equal Housing Opportunity

Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections.

Crypto loans are offered to U.S. borrowers by Figure Lending LLC. This product is not available to U.S. residents of DC, ID, IL, KY, MD, MS, SD, TX, VT, or VA.

Crypto loans are offered through Figure Markets Credit LLC to residents of the state of New York and to international customers except in the following jurisdictions: Crimea (Ukraine), Donetsk (Ukraine), Luhansk (Ukraine), Afghanistan, Albania, Belarus, Central African Republic,Congo (the Democratic Republic), Cuba, Ethiopia, Haiti, Iran (Islamic Republic of), Iraq, Lebanon, Libya, Mali, Myanmar (Burma), Nicaragua, Nigeria, North Korea (Democratic People’s Republic of), Pakistan, Palestine (State of), Russia, Somalia, South Sudan, Sudan, Syria, Ukraine, Venezuela, Yemen, or Zimbabwe.

Figure Markets Credit LLC. 650 S. Tryon Street, 8th Floor, Charlotte, NC 28202. (888) 926-6259. NMLS ID 2559612. For licensing information go to www.nmlsconsumeraccess.org. Figure Lending is not affiliated with Figure Markets Holdings, Inc., Figure Technologies, LLC or any of its subsidiaries.

Crypto Loans starts at a minimum of $5,000, subject to state and jurisdiction-specific legal limitations. Your loan amount will ultimately depend on the amount of collateral in your account and your eligibility will be determined by your state or jurisdiction of residence, credit profile, and other personal information available at the time of your application.

1 Liquidations will still occur if the loan becomes delinquent. The protective hedge applies only to price declines, not to missed payments, defaults, or violations of loan terms. Liquidation Protection is only available in CA, NY, FL, PA. More information on Liquidation Protection can be found here.

2 Repayment Period (Minimum-Maximum): 12 months
Maximum APR: 12.62% APR (APR includes interest plus applicable fees such as the 1% origination fee). Available interest rates for Figure’s Crypto-Backed Loan are 8.91% (9.999% APR) at 50% LTV or 11.50% (12.62% APR) up to 75%.
Representative Example (Total Cost): As an example, a borrower receives a Crypto Backed Loan at 50% LTV of $10,000 for a term of 12 months, with an interest rate of 8.91% and a 1% origination fee of $100, for an APR of 9.999%. In this example, the borrower will receive $10,000 and will make 12 monthly payments of $74.25. Rates will be higher for applications secured by assets with a higher LTV ratio. The Figure Crypto-Backed Loan has a 12 month interest-only repayment term and allows for a maximum initial LTV ratio of 75%. Interest rates change frequently so your exact interest rate will depend on the date you apply and may depend on many factors such as LTV ratio.

Investing in cryptocurrencies involves significant risks. Cryptocurrency trading is not available in NY. Please click here for risk disclosures on investing and trading in cryptocurrencies.

Figure Payments Corporation offers to self-directed investors and traders cryptocurrency brokerage services under the brand name, “Figure Markets”. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. Figure Payments Corporation’s NMLS ID number is 2033432, and is located at 100 West Liberty Street, Suite 600, Reno, NV., 89501. You can verify Figure Payments licensing status at the NMLS Consumer Access website. Click here for Figure Payment’s state license and regulatory disclosures.

Democratized Prime uses a Dutch auction method for its borrowers/lenders. There is an inherent risk due to interest rate volatility in a Dutch auction interest rates in the auction may rise rapidly. At the time of acceptance, your loan may be filled with a different or higher interest rate than offered at the time of selection. The interest rate is only fixed at the time of loan approval and not at the time of loan acceptance.

Borrowing and lending through the Democratized Prime platform involve substantial market, credit, and operational risks. The value of digital asset collateral may fluctuate sharply and without notice. Borrowers are solely responsible for monitoring and maintaining their loan-to-value (LTV) ratios. Market volatility, blockchain congestion, network outages, or banking-hour limitations may delay or prevent the ability to deposit or withdraw collateral in time to manage LTV levels, which may result in liquidation or loss of collateral.

Lenders are exposed to borrower performance and collateral recovery risk; repayment of principal and interest depends on the successful liquidation of pledged collateral. Access to deposits, withdrawals, or repayment proceeds may be delayed or restricted due to market stress or operational disruptions. Figure Markets and its affiliates do not guarantee repayment, liquidity, or asset value and are not responsible for losses or delays arising from such events.

By participating in the Democratized Prime program on Figure Markets, you acknowledge and agree to be bound by the applicable legal agreements and terms, depending on your role as a borrower or lender. More information can be found within the Democratized Prime Terms of Service,

Investment products: Not FDIC Insured, No Bank Guarantee, May Lose Value.

YLDS Stablecoins are unsecured face-amount certificates and solely backed by the assets of Figure Certificate Company (FCC), who is the issuer of the certificates. As a subsidiary of Figure Markets Holdings, Inc., FCC is (absent exclusion or exemption) required to comply with certain limits on its activity, including investment and/or trading limitations on its portfolio and other limitations under applicable banking and securities laws. FCC is not a bank, and the securities it offers are not deposits or obligations of, or backed or guaranteed or endorsed by, any bank or financial institution, nor are they insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency. The Certificates are not an insurance company product, an equity investment, or an investment in a money market mutual fund. FCC’s qualified assets on deposit may exceed the deposit amounts required by applicable regulations. If there are losses on FCC’s assets, FCC may not have sufficient resources to meet its obligations, including making interest and/or principal payments on your certificates. Most of FCC’s assets are debt securities and are subject to risks including credit risk, interest rate risk and prepayment and extension risk. You could lose money by investing in the Stablecoin. Although the Stablecoins seeks to preserve the value of your investment at $0.01 per share, it cannot guarantee it will do so. You should consider the investment objectives, risks, charges and expenses of certificates carefully before investing. Download a free prospectus, which contains this and other important information about our certificates Figure Certificate Company Prospectus available here. More information about YLDS and FCC can be found here

Interest rate applicable to all Certificates is the overnight Secured Overnight Financing Rate (“SOFR”) less 50 basis points, with a minimum rate of 0.00%. SOFR stands for the Secured Overnight Financing Rate (SOFR), which is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. For more information, please visit the Federal Reserve Bank of New York’s Website by clicking here.

Figure Certificate Company, Figure Investment Advisors LLC, Figure Payments Corporation, Figure Markets Credit LLC, Figure Markets Cayman Islands, Figure Markets Ireland Limited, and Figure Markets, Inc. are each wholly owned subsidiaries of Figure Technology Solutions, Inc. Products and services of all of these entities are offered under the Figure Markets brand. NOTE FOR INVESTORS: When applying for accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.

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Akriti Seth is a Zurich-based Business Journalist and Crypto Editor. Her passion for journalism has taken her across the globe – from thriving as an on-television correspondent to writing engaging articles, she has worked for companies like Informa UK, Bloomberg... Read More

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