Figure Technology Solutions creating the spark that could start an ECM Blockchain Reaction

Figure Technology Solutions, Inc. priced on February 18, 2026 what it described as the first SEC-registered offering of common equity that was both issued and settled entirely on blockchain technology. The Series A blockchain common stock deal was upsized from 4,230,000 shares to 4,375,000 shares, generating roughly $150 million in gross proceeds. Figure then used those proceeds, together with existing cash, to buy back 4,687,500 shares of its Class A common stock from certain current shareholders. Retail investor demand from their clients whose wallets met standard KYC, AML and other securities-law compliance requirements for the new blockchain shares was routed through Figure’s platform then allocated accordingly. The selling Class A common stockholders received payment for their shares in Figure’s SEC-registered yield-bearing stablecoin, YLDS, which currently pays SOFR-35bps and had $557 million in assets under management as of May 31.

Blockchain common stock was structured so that its economic profile would largely track that of Figure’s Class A common stock. Holders were intended to stand on equal footing with Class A shareholders for dividends and liquidation distributions, and in most situations each blockchain share carried a single vote (or pro-rata vote for fractional shares), cast together with the broader common stock base as one voting group.

At the same time, the company highlighted several meaningful distinctions between blockchain stock and traditional Class A shares. Figure retained the ability to deliver dividends or other distributions to blockchain stockholders directly to their wallets using blockchain-based representations of U.S. dollar value, such as payments in YLDS, instead of routing distributions through traditional payment channels. In some scenarios, holders of blockchain stock could also be recognized as a separate voting class, including on changes to the Certificate of Designation and potentially on certain amendments to the company’s articles of incorporation that would affect the blockchain stock.

The blockchain stock may be transferred either in a peer-to-peer transaction from a permitted holder’s wallet to another permitted holder’s wallet directly on the Provenance Blockchain or may be traded on Figure’s Alternative Trading System (ATS). Provenance Blockchain operates with a proof-of-stake, open-source design in which validators who register transaction data must commit to staking a minimum quantity of HASH coins to participate. The more HASH coins a validator stakes, the higher their probability of being randomly selected to record transactions and earn the associated network fee. Validators who act improperly or fail to meet protocol performance or security expectations may see a portion of their staked HASH balance reduced via slashing (fine paid in HASH coins) or may be “jailed,” meaning temporarily or permanently removed from active validation. Transaction fees follow a sliding schedule based on the dollar size of the trade, are calculated in basis points of the notional amount in USD, and are paid in HASH coins, with 60% of the fee allocated to validators and 40% to the HASH Market auction mechanism.

Only wallets that are compatible with the Provenance Blockchain can directly hold Figure’s blockchain common stock. The company’s Provenance-connected wallets are currently offered on a self-custody basis; the firm currently does not provide custodial services for blockchain assets. The blockchain maintains a complete transaction history by wallet address that is publicly visible, but that ledger does not disclose personally identifiable information about the wallet owners.

Participants on both sides of a blockchain common stock trade must qualify as permitted holders. They must use wallets that meet the compliance standards of the Provenance Blockchain and be on record with Figure Equity Solutions, Inc., a subsidiary of Figure. Buyers and sellers who subscribe to Figure’s ATS can also transact through that venue, but all settlement must occur in YLDS for both direct peer-to-peer and ATS-mediated trades. Unlike conventional common stock, blockchain shares can be divided and traded in fractional increments, and there is no minimum position size required to execute a transfer.

Holders of blockchain stock who wish to sell into traditional equity markets face a multi-step process to first convert their non-fractional blockchain holdings into Class A common stock. That conversion and sale workflow depends on external intermediaries and can extend beyond the standard T+1 settlement cycle for equities. Because the conversion and settlement can take longer, sellers may be exposed to additional price risk and transaction costs over the period required to complete the process.

If a Class A common stockholder prefers to hold blockchain common stock instead, they must initiate a conversion request with the transfer agent. Once the transfer agent processes that request, the Class A shares are removed from their prior form of registration and re-entered on the books to reflect their new status. The company’s official shareholder ledger, maintained by the transfer agent, is updated to show that the Class A shares have been converted, and a matching number of blockchain common shares is then recorded on the designated blockchain system as the holder’s revised position.

Although Figure pioneered this kind of blockchain-based common equity issuance, other companies have already signaled that they may follow a similar path. For example, FIGMA, a digital design and collaboration software provider, raised $1.2 billion in its IPO on July 31, 2025, and Bitgo Holdings Inc., a digital asset and cryptocurrency custody firm, completed a $213 million raise on January 21 of this year; both prospectuses contained detailed language indicating that issuances of blockchain common stock could be considered in the future. In addition, six other IPOs across different sectors during the first half of 2026 included prospectus provisions noting that any issuance of blockchain-based instruments would require board approval, although those filings did not explicitly reference blockchain common equity.

Pending regulatory and legislative developments in the United States may also be influencing the timing of new blockchain equity offerings. The U.S. Digital Asset Market Clarity Act aims to delineate digital asset and cryptocurrency oversight responsibilities between the SEC and CFTC. The bill has already cleared the House of Representatives but is still awaiting a vote in the Senate. Potential issuers may be monitoring whether the legislation passes before the August recess, as enactment and the formal recognition of the SEC’s role in regulating the tokenization of real-world assets could provide greater confidence in proceeding with tokenized stock deals. If the Senate does not hold a vote before the August recess, consideration of the bill may be postponed until 2027, as Congressional attention will largely shift to midterm election campaigns, and any change in control of either the House or Senate will ultimately shape how the bill is approached next year. A delay in passing the bill would not necessarily stop companies from raising capital through tokenized common stock and the SEC has already issued staff guidance regarding tokenized securities. However, the US Supreme Court’s 2024 decision in Loper Bright Enterprises v. Raimondo, which removed federal agencies’ authority to interpret ambiguous laws, could invite legal challenges to any attempt by regulators to expand their oversight of digital assets without clear, formal federal legislation.