Figure Technology, a blockchain-based lending platform, has secured a $250 million funding arrangement with Cross River Bank to originate crypto-backed loans. The deal, announced this week, gives Figure a fresh capital line to lend against digital assets without needing to fund each loan from its own balance sheet.
How the facility works
Cross River Bank will provide the capital, while Figure handles origination, underwriting and the underlying blockchain technology. It's a straightforward structure — the bank takes the credit risk on the loans, and Figure earns fees and interest spread. Crypto-backed loans let borrowers post bitcoin, ether or other tokens as collateral, avoiding a taxable sale while gaining access to cash. Figure already runs a similar product, but this facility dramatically scales its capacity.
A growing niche
Crypto-backed lending has been around for years, but it's still a small slice of the broader credit market. What's changing is that traditional banks are getting more comfortable with the model. Cross River, a New Jersey-based bank that's been active in fintech partnerships, isn't a newcomer here — it's worked with crypto firms before. Still, a $250 million commitment signals real institutional appetite. For borrowers, it means more liquidity options outside centralized exchanges or DeFi protocols.
Figure's broader push
Figure is best known for its Provenance blockchain and its mortgage and home equity lending business. Crypto-backed loans are a smaller but fast-growing piece of the puzzle. The company has been pushing to become a one-stop shop for asset-backed lending, using its own chain to reduce settlement times and costs. This Cross River deal gives it the firepower to go after that market more aggressively, especially as interest rates stabilize and demand for crypto credit picks back up.
Next up for Figure: turning that $250 million into actual loans. The company hasn't given a timeline, but expect the first batch of originations to hit in the coming weeks. Whether retail borrowers or institutions get first dibs remains an open question.
