Figure's Blockchain-Native IPO on Provenance: Will DeFi Redefine Capital Markets?

Figure Technology's blockchain-native IPO on Provenance is more than another fintech headline—it is a test case for how capital markets may operate when the IPO itself lives on a blockchain platform rather than being merely mirrored there.

On December 23, 2025 at 07:55, Mornings With Maria on Fox Business featured Mike Cagney, Figure co-founder and Executive Chair, to discuss how this first-of-its-kind blockchain-native IPO could reset expectations for decentralized finance (DeFi) and traditional IPO announcements.

Here are several thought‑provoking concepts worth sharing with business leaders:

• What happens when "going public" becomes going on‑chain?
  A blockchain-native IPO on Provenance uses blockchain technology, smart contracts, and a distributed ledger for issuance, ownership tracking, and settlement. That raises a strategic question: if equity can be born as a digital asset, why keep relying on legacy, batch-based market plumbing?

• From T+2 to real-time markets: is settlement risk now a choice, not a necessity?
  By conducting an IPO directly on a blockchain platform, Figure is effectively asking whether delays, reconciliation overhead, and counterparty risk are features of capital markets—or simply artifacts of pre‑digital infrastructure in an era of cryptocurrency, tokenization, and DeFi rails.

• DeFi as market infrastructure, not just a parallel universe.
  When a regulated financial technology (fintech) company like Figure Technology runs its IPO on Provenance, it reframes decentralized finance from "crypto's alternative system" to "next‑generation infrastructure" for capital markets. The line between DeFi protocols and mainstream fintech platforms starts to blur.

• Tokenization as a corporate finance strategy, not a side experiment.
  A blockchain-native IPO positions equity as a natively tokenized instrument from day one. That opens doors to programmable governance, automated distributions, and new secondary market structures, all governed via smart contracts on a distributed ledger rather than layers of intermediaries.

• Can a blockchain platform become the new exchange?
  Provenance, originally designed as a financial‑grade blockchain platform, is now hosting an IPO event that traditionally belongs to stock exchanges. That raises a strategic question for incumbents: in a world where digital assets and financial technology converge, does competitive differentiation move from listing venue to underlying chain?

• Growth strategy as architecture, not just geography.
  When Cagney talks about Figure's growth strategy and expansion plans, he is effectively describing how to scale a business and an ecosystem at once—where every new product, loan, or asset class onboarded to Provenance deepens liquidity, data, and network effects for the broader blockchain industry.

• Will future IPO announcements be about chains, not just tickers?
  If Figure's move succeeds, tomorrow's IPO announcements might highlight not only the exchange and valuation, but also the underlying blockchain technology, protocol economics, and interoperability story. The question for executives: will your next liquidity event be measured only in capital raised—or also in the new rails you choose for your shareholders?

By placing a landmark IPO directly on Provenance and framing it through a mainstream venue like Mornings With Maria, Figure Technology is inviting capital markets leaders to reconsider a basic assumption: is the future of going public about listing on an exchange—or about natively existing as an on‑chain, programmable, globally accessible financial asset?

For organizations exploring similar AI workflow automation or seeking to understand compliance frameworks for emerging technologies, Figure's blockchain-native approach offers valuable insights into how traditional finance and cutting-edge infrastructure can converge. Meanwhile, businesses looking to automate complex workflows can learn from how Figure is reimagining fundamental business processes through blockchain technology.

What is a "blockchain‑native IPO"?

A blockchain‑native IPO is a primary issuance of equity (or equity‑like tokens) that is created, recorded, and often settled directly on a blockchain platform rather than being issued through legacy exchange and registrar systems. The instrument is natively tokenized: ownership, transfers, and many post‑issuance actions (dividends, voting, cap table updates) can be managed by smart contracts and recorded on the distributed ledger.

How does an IPO on Provenance (or another chain) differ from a traditional IPO?

Rather than relying on centralized registries, batch settlement windows, and intermediary reconciliation, an on‑chain IPO issues tokens directly to investor wallets on the chosen ledger. This can enable near‑instant settlement, on‑chain ownership records, programmable corporate actions, and smoother secondary transfers — but practical differences depend on how the transaction is structured, the supporting off‑chain services, and applicable securities regulations.

Does on‑chain issuance mean settlement is immediate (no T+2)?

Technically, blockchain settlement can be atomic and near‑real‑time because token transfer and finality occur when the block is confirmed. In practice, whether markets move away from T+2 depends on regulatory acceptance, integration with custodians and broker infrastructure, and operational risk controls. Some implementations may still introduce controlled delays for compliance or operational reasons.

Are blockchain‑native IPOs compliant with securities laws?

They can be, but compliance requires careful design: registration or an applicable exemption, KYC/AML investor onboarding, adherence to transfer restrictions, and cooperation with regulated intermediaries (broker‑dealers, transfer agents, custodians) where required. Issuers should work with securities lawyers and regulators because legal enforceability of on‑chain records and permitted transfer mechanics varies by jurisdiction. Organizations implementing similar frameworks can benefit from understanding compliance frameworks for emerging technologies.

How are shareholder records and cap tables managed on‑chain?

An on‑chain ledger can act as the single source of truth for ownership: token balances and on‑chain transfers update the cap table immediately and transparently. That reduces reconciliation overhead, but legal recognition of the on‑chain register (vs. traditional paper or centralized registries) depends on contract frameworks, governing law, and whether off‑chain entities accept on‑chain records as definitive.

What are the main benefits for companies and investors?

Benefits include faster settlement, reduced reconciliation and counterparty risk, programmable corporate actions (automated dividends, vesting, voting), potential fractional ownership, broader investor accessibility, and new liquidity mechanisms. For issuers, natively tokenized equity can lower operational friction and enable more innovative secondary market structures.

What risks and challenges should issuers and investors expect?

Key risks include regulatory uncertainty, legal recognition of on‑chain records, smart contract vulnerabilities, custody and key‑management risks, interoperability limits between chains and legacy systems, and market‑structure issues (price discovery, manipulation). Operational maturity of supporting services (custodians, broker‑dealers, market makers) is also critical.

Can a blockchain platform replace traditional exchanges?

Potentially, for some functions: chains can host issuance, settlement, and on‑chain trading primitives. However, exchanges provide regulated market structure, centralized liquidity, surveillance, and price discovery today. Whether a chain displaces, complements, or becomes the new venue depends on regulatory acceptance, liquidity migration, and whether exchanges adopt or integrate with chain‑based rails.

How do voting rights, dividends, and other shareholder actions work on‑chain?

Smart contracts can automate corporate actions: token‑weighted voting, on‑chain dividend distribution to token holders, and rule‑enforced transfer restrictions. Still, issuers must ensure these mechanisms map to off‑chain legal documents and regulatory obligations so that shareholder rights are legally enforceable under applicable law.

What infrastructure and third parties are typically required for a blockchain‑native IPO?

Common partners include legal and compliance advisors, a regulated broker‑dealer or underwriter, custody providers (crypto custodians or institutional custodians supporting tokenized assets), transfer agents (on‑chain or hybrid), KYC/AML providers, market makers or liquidity providers, and the blockchain platform or protocol itself. Integration with existing post‑trade and reporting systems is often necessary. For organizations exploring similar AI workflow automation or seeking to understand operational requirements, these infrastructure considerations offer valuable insights.

How will secondary trading and liquidity work for tokenized shares?

Secondary trading can occur on regulated trading venues that support tokenized securities, alternative trading systems (ATS), or decentralized liquidity protocols (e.g., AMMs or DEXes) if regulatory safeguards and transfer restrictions are enforced. Liquidity will depend on market makers, investor adoption, and whether off‑chain and on‑chain markets interoperate smoothly.

What strategic questions should executives ask before choosing to go on‑chain?

Key questions include: Which chain or platform provides the right security, governance, and compliance features? How will legal and regulatory obligations be satisfied? What investor base do you need to reach, and can they custody tokens? How will you handle custody, KYC, tax reporting, and ongoing disclosure? Finally, how does on‑chain issuance support your long‑term product and liquidity strategy?

How do organizations get started if they want to pursue a blockchain‑native IPO?

Start with legal and regulatory scoping, engage securities counsel, and build a cross‑functional team (finance, legal, compliance, engineering). Select a blockchain platform and token model, choose custodians and compliance providers, design smart contracts and investor onboarding flows, pilot issuance mechanics with advisors, and coordinate with market makers and trading venues for secondary liquidity. A staged approach — pilot, private placement, then broader public issuance — is common. Meanwhile, businesses looking to automate complex workflows can learn from how these financial institutions are bridging legacy systems with cutting-edge technology.