Figure Technology Solutions Ltd announced the issuance of FGRD, the first SEC-registered common stock created natively on a public blockchain, and is relying on its On-Chain Public Equity Network - OPEN - to handle the complete lifecycle of those shares without routing through traditional intermediaries.
In an interview, Figure CEO Michael Tannenbaum discussed the regulatory and operational approach the company used to move away from the Depository Trust & Clearing Corporation - DTCC - and legacy market plumbing. He emphasized that Figure pursued this path by demonstrating how blockchain execution could meet existing regulatory requirements rather than seeking new rulemaking.
"We didn’t ask the SEC to approve blockchain," Tannenbaum said. "We showed them blockchain could satisfy the rules they already had." That regulatory strategy allowed Figure to register a common stock that exists natively on-chain while remaining within the parameters of current securities rules.
A primary operational consequence of issuing equity on OPEN is the ability to settle trades on a T+0 basis. This is a material acceleration from the prevailing T+2 schedule in traditional public markets. By operating on-chain, Figure eliminates the two-day settlement window and the attendant counterparty risks that arise from legacy market-maker arrangements.
Tannenbaum characterized the standard T+2 settlement convention as a relic of an analog infrastructure. "T+2 is a workaround, not a feature," he said, describing the efficiency gains available through Figure's alternative trading system - the Figure ATS - and the OPEN network. The design supports what the company describes as atomic settlement, in which exchanges of cash and shares occur simultaneously, limiting the exposure that comes with staggered settlement schedules.
The CEO drew a direct line from Figure's earlier work in mortgages to its equity effort. In prior projects, the company removed intermediary steps in mortgage transactions, reducing closing timelines from 45 days to five days and lowering costs from $12,000 to $1,000. Tannenbaum said the firm aims to import the same set of efficiencies to securities trading while building safeguards against custody risks.
Addressing retail concerns about private key management under self-custody arrangements, the platform incorporates a transfer agent role that maintains a recoverable record of ownership. "A lost key does not mean lost shares," Tannenbaum said, explaining that recovery is possible through identity verification processes so that shareholders retain access to their assets even if they lose cryptographic credentials.
Figure's growth plan for OPEN centers on creating a multi-issuer infrastructure intended to attract a range of corporate issuers. Tannenbaum indicated that several companies are in the pipeline to issue their equity natively on the chain. "We’re seeing strong interest from companies looking to modernize how their equity operates," he said, noting that prospective issuers include both crypto-native firms and traditional companies seeking ways to reward long-term holders.
Convincing legacy broker-dealers and execution venues to connect to Figure's ATS is a central part of the adoption story. Tannenbaum said that the technical integration is not complex for brokers already connected to multiple execution venues, and he argued that customer demand for direct access to on-chain assets will drive connectivity. Figure expects meaningful institutional integration progress within the next 12 to 18 months, a timetable the company ties to broader modernization efforts across financial infrastructure.
OPEN's expansion also contemplates a broader multi-chain presence to access deeper global liquidity pools on networks such as Ethereum and Solana. While Provenance Blockchain currently serves as the authoritative ledger for the issued shares, Tannenbaum was explicit that "chain-exclusivity is not permanent" for the ecosystem, signaling plans to interoperate with additional networks over time.
Figure distinguishes its approach from tokenized representations that mirror existing securities. Unlike those shadow tokens, Figure's model grants investors direct ownership of registered equities on-chain, providing immediate access to funds and the ability to monetize holdings without waiting for legacy reconciliation processes to complete.
Management frames the move as an initial step toward a trading environment that can support 24/7 global market activity. Although others have explored elements of around-the-clock trading, Figure states it is the only firm to have executed a natively on-chain public common stock to date.
The launch of on-chain registered equity coincides with a wider regulatory and market discussion around modernizing public company obligations and trading windows. The SEC, under Chairman Paul Atkins, is reportedly moving proposals to make quarterly reporting optional for public companies, and major exchanges are considering longer trading windows, including 23/5 and 24/7 sessions, to better align with the continual trading characteristic of digital-asset markets.
Figure's management anticipates more issuers will adopt native on-chain equity structures as the cost advantages of removing transfer agents and DTCC fees become clearer. The company positions OPEN as a foundational step toward real-time capital markets that operate independently of legacy infrastructure.
Key takeaways
- Figure issued FGRD, an SEC-registered common stock natively on a public blockchain and is operating OPEN to manage the full lifecycle of those shares.
- The infrastructure enables T+0 settlement, removing the traditional two-day settlement lag and reducing counterparty exposure associated with legacy market-makers and intermediaries.
- OPEN aims to be multi-issuer and multi-chain, with plans to pursue institutional integrations over the next 12 to 18 months and expand liquidity access beyond the current Provenance Blockchain ledger.
Impacted sectors: Capital markets infrastructure, broker-dealers and securities exchanges, and technology services for corporate finance and transfer agency functions.
Risks and uncertainties
- Regulatory acceptance and interpretation remain central - while Figure says it worked within existing rules, continued regulatory clarity or changes could affect adoption by issuers and intermediaries. Impacted sectors: capital markets and compliance functions of public companies.
- Institutional integration - the timeline for legacy brokers and trading venues to connect to Figure ATS is an estimated 12 to 18 months; progress may vary and could influence liquidity and market participation. Impacted sectors: broker-dealers and exchange connectivity services.
- Custody and operational risk perceptions - although Figure maintains a recoverable ownership record via a transfer agent role, concerns about self-custody and key-loss recovery may affect retail and institutional willingness to transition assets on-chain. Impacted sectors: retail brokerage services and custodial platforms.
This article reports on Figure's announcement and company statements regarding its on-chain equity issuance and the OPEN network. It does not provide investment advice.