Figure Gets Mixed Wall Street Debut as KBW, BofA Diverge on Outlook
In its highly anticipated initial public offering (IPO), blockchain lender Figure (FIGR) made a mixed debut on the market, with two major investment banks issuing differing views on the company's growth prospects. Keefe, Bruyette Woods (KBW) initiated coverage of Figure with an outperform rating and a 12-month price target of $48.50, implying a potential upside of 17.5%. In contrast, Bank of America issued a neutral rating, citing execution risks and overreliance on Figure's non-blockchain-native home equity line of credit (HELOC) business.
Market Impact
Figure's IPO raised $150 million in gross proceeds, valuing the company at approximately $2.25 billion. The stock opened at $7.50, a 7.5% premium to its initial public offering price of $6.95. However, trading was volatile, with shares fluctuating between $7.20 and $8.10 before settling at $7.85.
Company Background
Figure is a blockchain-based lending platform that enables tokenized credit transactions. The company's platform allows borrowers to access capital more efficiently and lenders to participate in the credit market with greater transparency and security. Figure has gained significant traction in the tokenized credit space, with a 30% market share as of June 2025.
Market Implications
The differing views from KBW and Bank of America reflect ongoing concerns about Figure's ability to scale its blockchain lending platform beyond HELOCs. While KBW sees significant upside potential in Figure's dominance of the tokenized credit markets, Bank of America is more cautious, citing execution risks and overreliance on non-blockchain-native business.
Stakeholder Perspectives
Figure's management team has emphasized the company's commitment to expanding its blockchain-based lending platform and exploring new use cases. In a statement, CEO Mike Cagney said, "We believe our platform has the potential to transform the way credit is accessed and traded. We are excited about the opportunities ahead and look forward to working with our investors and stakeholders to drive growth."
Future Outlook
The mixed debut of Figure's IPO highlights the complexities of scaling a blockchain-based lending platform in a rapidly evolving market. While KBW sees significant upside potential, Bank of America's concerns reflect ongoing challenges in the fintech space. As Figure works to expand its platform and address regulatory hurdles, investors will be closely watching the company's progress.
In conclusion, Figure's IPO marks an important milestone for the blockchain lending sector, but the company still faces significant challenges in scaling its platform and addressing regulatory concerns. As the market continues to evolve, stakeholders will be closely monitoring Figure's progress and weighing the potential risks and rewards of investing in this innovative fintech firm.
*Financial data compiled from Coindesk reporting.*
