Sixth Street, a private equity firm managing over $100 billion in assets, has announced a $200 million investment in the blockchain-based lending platform, Figure Technology Solutions. The investment was disclosed in a press release on February 27, where both parties revealed the establishment of a joint venture. Under this partnership, Sixth Street’s Asset-Based Finance division will contribute $200 million in equity to Figure, enhancing the capabilities of Figure Connect, the platform’s private credit lending segment, particularly in loan origination. As stated by Sixth Street, this joint venture is expected to inject more than $2 billion in liquidity into the non-agency mortgage market through Figure, enabling Figure Technology to expand its operations. “This collaboration between Figure and Sixth Street positions Figure Connect for success in a way that aims to reduce costs for both lenders and borrowers, akin to the cost reductions seen with the introduction of TBAs in the agency mortgage landscape. It affirms Figure Connect as the largest and most liquid blockchain-based capital market, ” remarked Todd Stevens, chief capital officer at Figure. Launched in June 2024, the Figure Connect platform employs blockchain technology to facilitate benefits such as market risk hedging and sales automation.

The platform operates on the Provenance Blockchain, which is utilized by Figure to onboard all loans. As a prominent originator of real-world assets, the Provenance Blockchain allows Figure’s partners to engage in price discovery through on-chain loan pool bidding. Notably, over 40% of Figure’s transaction volume occurred on the blockchain in December 2023. Through the partnership with Sixth Street, Figure aims to access additional liquidity and secure an “always-on” programmatic bid for its assets. This joint venture is set to enhance liquidity for Figure’s users, with the loans from Figure earmarked for securitization as part of this collaboration.