Figure's shift into tokenized credit is opening a potential $4 trillion market, according to a new report from Bernstein. The research firm highlighted that loan volumes on the platform surged 108% year-over-year in April alone.
What tokenized credit means
Tokenized credit refers to loans represented as digital tokens on a blockchain, allowing for faster settlement and broader investor access. Figure, the fintech firm known for its blockchain-based mortgage and personal loan products, has been pivoting its business model to focus on this area. The Bernstein report notes that the move positions Figure to capture a slice of a massive addressable market.
The scale of the opportunity
Bernstein pegs the total opportunity for tokenized credit at $4 trillion. That figure covers everything from consumer lending to corporate debt that could eventually move onto distributed-ledger rails. The report suggests that Figure is among the first major players to bet heavily on this model, which could dramatically reduce costs and intermediaries in traditional lending.
Loan volume growth accelerates
The 108% year-over-year jump in loan volumes for April shows the strategy is gaining traction. Bernstein did not disclose absolute volume figures, but the growth rate signals that both borrowers and investors are increasingly comfortable with tokenized structures. The report attributes the surge to Figure's expanding network of institutional partners and its ability to originate loans directly on-chain.
Figure has not commented publicly on the Bernstein analysis. The company continues to build out its tokenization infrastructure, including partnerships with custodians and exchanges to facilitate secondary trading of loan tokens.
