Figure Launches Blockchain-Native Stock Offering Amid $2.5B Data Breach Fallout

Fintech innovator Figure Technology Solutions has begun marketing 4.23 million shares of its blockchain-native common stock, a first-of-its-kind offering that lets equity trade on its Provenance Blockchain-based alternative trading system rather than traditional exchanges like Nasdaq.

The Feb. 14 announcement, timed with preliminary Q4 earnings showing 131% loan volume growth, arrives alongside confirmation of a customer data breach where hacking group ShinyHunters leaked 2.5 gigabytes of personal information after a social engineering attack. For the crypto and TradFi intersection, Figure’s dual narrative captures both the promise of blockchain infrastructure for capital markets and the persistent security challenges facing fintech pioneers.

Figure Markets Makes History with Blockchain-Native Stock Trading

Mike Cagney’s fintech baby is doing something no publicly traded company has done before. Figure Technology Solutions announced Friday the formal marketing of 4.23 million shares of its Series A Blockchain Common Stock, a security designed to live entirely on blockchain infrastructure rather than traditional exchange rails .

The shares won’t trade on Nasdaq, where FIGR has been listed since September 2025. Instead, they’ll transact on Figure’s own alternative trading system built atop Provenance Blockchain, the company’s purpose-built protocol for financial services . Each blockchain share converts to common stock on a one-for-one basis, giving investors a bridge between experimental and traditional equity structures.

Pricing is expected after market close on Feb. 17, with a group of unidentified shareholders selling into the offering. Figure plans to repurchase up to $30 million of Class A common stock from underwriters at the same price following completion, using cash on hand to support the structure .

Goldman Sachs, Morgan Stanley, and Cantor Fitzgerald are leading the charge as joint book-running managers, a lineup that signals Wall Street’s willingness to explore blockchain-native securities despite regulatory uncertainty .

What Are Blockchain-Native Shares and Why Do They Matter?

The concept takes some unpacking. Traditional public company shares exist as entries in centralized depositories, with trading constrained to exchange hours and settlement cycles that can take days. Figure’s blockchain-native stock flips that model.

These securities use what Figure calls a “blockchain-only securities stack.” The shares issue on Provenance Blockchain, trade on Figure’s non-custodial alternative trading system, and settle directly in self-custody user wallets . No central clearinghouse. No T+2 settlement. No exchange-imposed trading hours.

Executive Chairman Mike Cagney framed the launch as infrastructure evolution. “This is a new capital markets infrastructure moment for efficiency and risk management — a huge leap forward from the legacy securities market infrastructure, and the start of a world that no longer needs it,” he said when announcing the November filing .

The benefits, as Figure pitches them, include 24/7 trading capability, reduced settlement risk, and new functionality like borrowing against and lending the stock directly on blockchain — services traditionally handled by prime brokers . For a company whose ecosystem has already originated over $22 billion in home equity loans on-chain, extending the model to equity feels like a logical next step .

January saw Figure launch its On-chain Public Equity Network (OPEN), positioning itself as the first issuer to list equity natively on blockchain. Friday’s offering puts that vision into practice .

Strong Q4 Results Show Figure’s Momentum

The blockchain stock launch didn’t arrive in a vacuum. Figure accompanied the announcement with preliminary fourth-quarter results that showcase accelerating growth.

Consumer loan marketplace volume jumped 131% year-over-year to $2.7 billion in Q4, according to the company’s Friday statement. For the full year 2025, volume hit $8.4 billion, a 63% increase from 2024 .

Adjusted EBITDA is expected between $80 million and $83 million on net income of $158 million to $162 million for the quarter ended Dec. 31 . Those numbers suggest the blockchain infrastructure thesis is producing real profits, not just experimental buzz.

Mike Tannenbaum, Figure’s CEO, tied the results directly to the company’s broader mission. “These results reflect the meaningful progress we’ve already made in modernizing capital markets and position us to further accelerate that transformation,” he said .

FIGR stock has had a wild ride since its September IPO. Shares hit a record $78 on Jan. 20 before retreating sharply. They closed Friday at $34.88, up 2.36% on the day but down significantly from the January peak . The offering announcement and earnings likely provided some support amid broader market volatility.

ShinyHunters Breach Casts Shadow Over Figure’s Big Day

Here’s where the narrative gets complicated. The same Friday that Figure touted its blockchain-native offering, the company confirmed a customer data breach that exposed personal information.

Hacking group ShinyHunters claimed responsibility, saying Figure refused to pay a ransom and that it published 2.5 gigabytes of stolen data on its dark web leak site . TechCrunch reported reviewing files containing customers’ full names, home addresses, dates of birth, and phone numbers .

Figure’s statement described the incident as a social engineering attack targeting an employee. “We recently identified that an employee was socially engineered, and that allowed an actor to download a limited number of files through their account,” the company said. “We acted quickly to block the activity and retained a forensic firm to investigate what files were affected” .

Social engineering, in this context, means attackers manipulated an employee through deceptive communications to gain system access — a tactic increasingly common as hackers target human rather than technical vulnerabilities. Chainalysis reported in January that over $17 billion in crypto was stolen in 2025 through AI-powered impersonation scams, underscoring the scale of the threat .

A member of ShinyHunters reportedly told TechCrunch the breach was part of a broader campaign targeting companies using Okta for single sign-on. Other alleged victims include Harvard University and the University of Pennsylvania .

Breach Details at a Glance

• Perpetrator: ShinyHunters hacking group
• Data volume: 2.5 gigabytes leaked
• Information exposed: Names, addresses, birth dates, phone numbers
• Attack vector: Social engineering of employee
• Company response: Blocked access, hired forensic firm, offering free credit monitoring

Figure is offering complimentary credit monitoring to all affected individuals and says it continues monitoring accounts with “strong safeguards” in place to protect customer funds . The company declined to answer specific questions about the breach’s scope.

The Okta Connection and Broader Cyber Risks

The breach’s alleged connection to Okta deserves attention. Okta provides identity and access management services to thousands of enterprises, including single sign-on capabilities that let employees access multiple applications with one credential. If ShinyHunters compromised Okta customers at scale, the ripple effects could extend far beyond Figure.

Harvard and the University of Pennsylvania haven’t confirmed breaches, but their naming by the hacking group suggests higher education and financial services may both be in the crosshairs. For Figure, which handles sensitive financial data and operates at the intersection of lending and crypto, the trust implications are significant.

Data breaches remained widespread throughout 2025. The Privacy Rights Clearinghouse logged more than 8,000 notification filings tied to over 4,000 separate incidents affecting at least 374 million people in its December 2025 report . Figure now joins that grim statistic.

The timing couldn’t be worse for a company trying to sell institutional and retail investors on the safety and efficiency of blockchain infrastructure. Critics will likely argue that if a fintech firm can’t protect basic customer data, how can it be trusted to revolutionize capital markets?

Provenance Blockchain: The Technology Behind the Offering

To understand Figure’s blockchain-native stock, you need to understand Provenance Blockchain. Launched in 2018, Provenance is a purpose-built, open-source blockchain protocol designed specifically for financial services .

Unlike general-purpose blockchains like Ethereum that prioritize broad smart contract functionality, Provenance focuses on financial primitives: origination, funding, sale, and trading of tokenized assets. It uses the Cosmos SDK, which enables interoperability with other blockchains while maintaining fast finality and low transaction costs .

Key features include flat, fixed transaction fees instead of Ethereum-style gas auctions, and true finality — once a transaction confirms, it’s permanent with no rollback or fork risk . For financial institutions moving millions of dollars, that predictability matters.

The ecosystem includes DART (Digital Asset Registry Technology), a digital loan registry used by over half of the top 20 independent mortgage banks, including Goldman Sachs, Jefferies, and Deutsche Bank . It also powers $YLDS, an SEC-registered yield-bearing stablecoin that operates as a tokenized money market fund .

Figure itself is both the largest user of Provenance and a significant contributor to its development. The company’s lending platform has originated over $22 billion in home equity loans on the blockchain, making Figure’s ecosystem the largest non-bank provider of home equity financing .

What Mike Cagney’s Vision Means for Traditional Finance

Mike Cagney has been here before. He co-founded SoFi, took it public, and helped pioneer the fintech lending space. With Figure, he’s betting that blockchain isn’t just for crypto speculation — it’s for rebuilding financial infrastructure from the ground up.

“This is a new capital markets infrastructure moment for efficiency and risk management,” Cagney said in November. “A huge leap forward from the legacy securities market infrastructure, and the start of a world that no longer needs it” .

The blockchain-native stock offering tests that thesis with real money. If successful, it could pave the way for other public companies to issue dual-class shares that trade on-chain while maintaining traditional listings. If it fails — whether from technical challenges, regulatory pushback, or simply lack of investor interest — it becomes a footnote rather than a revolution.

The data breach adds an unwelcome variable. Cagney and team must now convince investors that blockchain infrastructure is both innovative and secure, even as hackers demonstrate that human vulnerabilities remain the weakest link.

Investor Takeaways: Opportunity Meets Reality

For investors watching Figure, Friday’s dual announcements create a complicated picture.

The bull case: Figure’s core business is growing rapidly, with loan volume up 131% in Q4 and profitability improving. The blockchain-native stock offering could unlock new efficiencies and attract investors seeking exposure to on-chain capital markets innovation. Goldman, Morgan Stanley, and Cantor’s involvement suggests institutional confidence in the structure .

The bear case: FIGR stock has already fallen 55% from its January peak, and the data breach raises legitimate questions about operational security . If customer trust erodes, loan originations could suffer. Regulatory scrutiny around blockchain securities and data protection may intensify.

The stock closed Friday at $34.88, giving Figure a market capitalization around $7.46 billion . Analysts maintain a Buy consensus with a $59.11 price target, implying roughly 69% upside from current levels . Whether that optimism survives the breach news remains to be seen.

The next dates to watch: Feb. 17 for offering pricing, Feb. 26 for full Q4 earnings, and the coming weeks for any regulatory or law enforcement response to the data incident.

The Bottom Line on Figure’s Blockchain Experiment

Figure is attempting something genuinely new: public equity that lives on blockchain, trades outside traditional exchange hours, and settles in user wallets. If it works, it could accelerate the tokenization of real-world assets that institutions have been talking about for years.

But the data breach serves as a stark reminder that innovation and security must advance together. Blockchain’s transparency offers certain protections, but it can’t stop a socially engineered employee from leaking customer data. Figure’s response — blocking access, hiring forensic experts, offering credit monitoring — follows industry best practices, but the damage to reputation may take longer to repair.

For the crypto industry watching from the sidelines, Figure’s experiment matters beyond one company’s stock price. It represents the most ambitious attempt yet to bridge traditional public equity markets with blockchain-native infrastructure. Whether that bridge holds weight — or collapses under the strain of security failures and market skepticism — will shape conversations about on-chain finance for years to come.