Figure Issues Mortgage-Backed Securities on Provence Public Blockchain

According to reports, Figure announced its latest issuance of mortgage-backed securities (ABS), all of which are recorded on the Provence public blockchain founded by Figure. This is the first Figure ABS release to receive a rating. DBRS Morningstar gives AAA rating to Class A bills and A (low) rating to Class B bills. ABS is underwritten by Jefferies, JP Morgan, and Goldman Sachs.

Figure Issuing ABS on Provence Public Blockchain

The fintech industry has been rapidly transforming the traditional finance sector with technological advancements such as blockchain. Figure, a leading blockchain technology provider in the financial industry, has recently announced its latest issuance of mortgage-backed securities (ABS) on the Provence public blockchain. Notably, this is the first time that a Figure ABS release has received a rating, with AAA rating for Class A bills and A (low) rating for Class B bills given by DBRS Morningstar. ABS is underwritten by Jefferies, JP Morgan, and Goldman Sachs.

What are Mortgage-Backed Securities?

Mortgage-Backed Securities (MBS) are financial instruments that are created by pooling together mortgages and then selling them to investors. MBSs are known to provide a steady income stream for investors while helping mortgage borrowers get a lower interest rate.

Figure’s Provence Blockchain

The Provence public blockchain is utilized for recording all the mortgage and loan assets of Figure. The blockchain’s primary goal is to provide transparency, lower costs, and increase financial access for borrowers. The Provence blockchain is built on Provenance.io, which is a blockchain protocol designed to enable the issuance and management of asset-backed securities (ABS). With its decentralized architecture and its ability to reduce fraud, the blockchain ensures that asset data is securely stored, easily auditable, and tamper-proof.

The Significance of the Rating

The launch of the Figure ABS is significant because it represents the first time that a rating has been issued for the offering. DBRS Morningstar provides credit rating services to the global banking and financial industry. The AAA rating for Class A bills indicates a very high credit quality, while the A (low) rating for Class B bills highlights above-average credit quality. These ratings indicate that the securities are considered high-quality investments, providing investors with an opportunity to diversify their portfolios.

Underwriters of the ABS

Jefferies, JP Morgan, and Goldman Sachs are some of the leading underwriters of the ABS. The underwriters help Figure in selling the ABS in the market by creating demand and finding potential investors. Underwriters, in turn, earn a fee for their services.

Conclusion

The use of blockchain technology has greatly impacted the financial sector, providing users with more security, transparency, and lower costs. Figure’s utilization of the Provence public blockchain to record its mortgage-backed securities represents a significant milestone in the industry, and it is an indicator of the growing importance of blockchain technology. With underwriters like Jefferies, JP Morgan, and Goldman Sachs on board, Figure is poised to drive further innovation in the industry.

FAQs

Q1) What is the Provence public blockchain?
A) The Provence blockchain is a public blockchain created by Figure to store all its mortgage and loan asset data securely.
Q2) What is the significance of the rating for the Figure ABS?
A) The rating provided by DBRS Morningstar gives investors confidence in the quality of securities that they are investing in.
Q3) Who are the underwriters of the ABS offering by Figure?
A) Jefferies, JP Morgan, and Goldman Sachs are some of the leading underwriters of the ABS.