On-Chain Stock Issuance Revolution: Figure Technologies Launches OPEN Platform to Transform Equity Markets

In a landmark development for financial technology, Nasdaq-listed Figure Technology Solutions has unveiled the On-Chain Public Equity Network (OPEN), fundamentally transforming how investors issue and lend real-world stocks. This blockchain-based platform, announced in San Francisco on March 15, 2025, eliminates traditional intermediaries by enabling direct ownership and transactions of securities on a proprietary distributed ledger. The OPEN platform represents a significant evolution beyond existing tokenized stock models, potentially reshaping equity market infrastructure for years to come.

Understanding the OPEN Platform’s Revolutionary Approach

Figure Technologies’ OPEN platform introduces a fundamentally different model for digital securities. Unlike synthetic tokenized stocks that merely track underlying assets through third-party arrangements, OPEN directly issues stocks with verifiable ownership rights on its blockchain. This distinction creates genuine property rights for investors rather than derivative claims. Consequently, shareholders can exercise voting rights, receive dividends, and participate in corporate actions directly through the blockchain infrastructure.

The platform’s architecture enables several transformative capabilities. First, it allows companies to issue shares directly to investors without traditional intermediaries. Second, investors can collateralize their holdings for loans or engage in peer-to-peer lending without brokerage involvement. Third, the system provides transparent, immutable records of ownership and transaction history. This approach potentially reduces settlement times from days to minutes while dramatically lowering transaction costs.

Technical Architecture and Security Framework

Figure Technologies developed OPEN using a proprietary blockchain specifically designed for securities compliance and performance. The network reportedly processes thousands of transactions per second while maintaining regulatory compliance through embedded identity verification protocols. Each stock issuance receives a unique digital certificate representing actual ownership rather than a synthetic derivative. The system incorporates multi-signature security protocols and cryptographic proof of ownership that meets or exceeds traditional custody standards.

Security measures include several innovative features. The platform utilizes zero-knowledge proofs for privacy-preserving transaction validation. Additionally, it implements smart contract automation for corporate actions like dividend distributions and voting processes. Regulatory compliance mechanisms are built directly into the protocol layer, ensuring adherence to securities laws across different jurisdictions. This technical foundation enables the platform’s core promise: eliminating intermediaries while maintaining rigorous compliance standards.

Comparative Analysis: OPEN vs. Traditional Tokenized Stocks

The financial technology sector has witnessed numerous tokenization initiatives in recent years. However, most existing solutions create synthetic assets that track underlying securities through complex legal and operational structures. These models typically require traditional custodians to hold the actual shares while issuing tokens representing beneficial ownership. In contrast, OPEN’s approach establishes direct legal ownership on the blockchain itself, fundamentally changing the relationship between investors and their securities.

Market Impact and Industry Implications

The OPEN platform’s launch arrives during a period of significant transformation in financial markets. Traditional securities settlement systems, while reliable, often involve multiple intermediaries that increase costs and complexity. Figure Technologies’ solution directly addresses these inefficiencies by leveraging blockchain’s inherent characteristics. Market analysts anticipate several potential impacts from this technological advancement.

First, reduced intermediary involvement could substantially lower transaction costs for both issuers and investors. Second, enhanced liquidity might emerge through simplified lending and collateralization mechanisms. Third, global accessibility could improve as blockchain’s borderless nature facilitates cross-border investments. However, regulatory acceptance across different jurisdictions remains a critical factor for widespread adoption. The platform’s design reportedly incorporates compliance features that address key regulatory concerns about investor protection and market integrity.

Regulatory Landscape and Compliance Considerations

Blockchain-based securities platforms operate within a complex regulatory environment. Figure Technologies has engaged extensively with regulators during OPEN’s development phase. The platform incorporates several compliance-oriented features designed to meet existing securities regulations while leveraging blockchain efficiencies. These include:

• Identity Verification: Embedded KYC/AML protocols that verify participant identities
• Transaction Monitoring: Real-time surveillance capabilities for regulatory reporting
• Ownership Tracking: Transparent, immutable records of beneficial ownership
• Jurisdictional Compliance: Configurable rulesets for different regulatory regimes

The company has pursued regulatory approvals in multiple jurisdictions, recognizing that different markets have varying requirements for securities issuance and trading. This regulatory engagement represents a strategic approach to blockchain implementation in regulated financial markets. Industry observers note that successful regulatory navigation could establish important precedents for future blockchain-based financial infrastructure.

Expert Perspectives on Blockchain Equity Markets

Financial technology experts have analyzed the potential implications of direct on-chain stock issuance. Dr. Elena Rodriguez, a fintech researcher at Stanford University, notes that “true blockchain-native securities represent the next evolutionary step beyond tokenization of existing instruments.” She emphasizes that eliminating intermediary layers could reduce systemic risk while increasing market efficiency. However, she cautions that widespread adoption requires addressing regulatory, technical, and behavioral challenges.

Market infrastructure specialists highlight the platform’s potential impact on settlement systems. Traditional settlement involves multiple intermediaries including clearing houses, custodians, and transfer agents. OPEN’s approach could streamline this process significantly. Industry data suggests that blockchain-based settlement could reduce operational costs by 30-50% while minimizing counterparty risk. These efficiency gains might ultimately benefit investors through lower costs and improved access to liquidity.

Implementation Timeline and Adoption Prospects

Figure Technologies has outlined a phased implementation approach for the OPEN platform. Initial deployment focuses on private market securities and restricted offerings, allowing controlled testing of the infrastructure. Subsequent phases will expand to publicly traded equities based on regulatory approvals and market readiness. The company has established partnerships with several financial institutions to facilitate integration with existing market infrastructure.

Adoption prospects depend on several factors. First, regulatory acceptance in key jurisdictions will determine geographic availability. Second, institutional acceptance requires demonstrated reliability and security. Third, user experience must compare favorably with traditional systems. Early indicators suggest strong interest from both issuers seeking capital efficiency and investors pursuing enhanced liquidity options. The platform’s success could accelerate broader blockchain adoption across financial markets.

Conclusion

Figure Technologies’ OPEN platform represents a significant advancement in blockchain-based financial infrastructure. By enabling direct on-chain stock issuance and lending, the system potentially transforms how securities are created, traded, and utilized. This approach moves beyond synthetic tokenization to establish genuine blockchain-native ownership structures. While regulatory and adoption challenges remain, the platform’s technical architecture and compliance features address key concerns. The OPEN initiative could ultimately contribute to more efficient, accessible, and transparent equity markets through innovative application of blockchain technology.

FAQs

Q1: How does OPEN differ from existing tokenized stock platforms?
OPEN establishes direct legal ownership on-chain rather than creating synthetic derivatives. This fundamental difference eliminates multiple intermediary layers and enables true peer-to-peer transactions with actual property rights.

Q2: What regulatory approvals has Figure Technologies obtained for OPEN?
The company has engaged with multiple regulatory bodies during development. While specific approvals vary by jurisdiction, the platform incorporates comprehensive compliance features including KYC/AML protocols, transaction monitoring, and configurable regulatory rulesets.

Q3: Can investors use OPEN for all publicly traded stocks?
Initial deployment focuses on specific securities and offerings. Full accessibility to all publicly traded stocks will depend on regulatory approvals, issuer participation, and integration with existing market infrastructure over time.

Q4: How does OPEN handle corporate actions like dividends and voting?
The platform automates corporate actions through smart contract functionality. Dividend distributions, proxy voting, and other corporate events execute automatically based on predefined conditions and ownership records maintained on the blockchain.

Q5: What security measures protect investors’ assets on the OPEN platform?
Security features include multi-signature protocols, cryptographic proof of ownership, institutional-grade custody solutions, and insurance arrangements. The proprietary blockchain architecture incorporates multiple security layers designed to meet financial industry standards.