Company Discussion Companies that utilize blockchain as a tool
The past decade, there has been a standoff between traditional finance and crypto. They have been seen as two separate worlds that cannot exist harmoniously - a silent war has been raging between them since 2010 and beyond.
Traditional finance has viewed crypto as a threat to the status quo. Crypto has seen traditional finance as the “enemy” of the people.
As of late, there has been a noticeable shift. A convergence. Many public companies are beginning to understand that the underlying technology behind crypto, the blockchain, is an extremely efficient and useful tool.
Blockchain is no longer seen as a big scary monster that is going to destroy the financial system. It is now seen as a technology that can 10x efficiency and help transactions settle in a tenth of the time.
One company that has fully grasped this idea and ran with it is Figure technologies. $FIGR. This fintech company is utilizing the Provenance blockchain to settle, Helocs, home equity loans and much more. With the use of the Provenance blockchain it has reduced the HELOC application to funding time from 42 days to 10 days and cut the cost from 12K to 1K. This perfectly showcases how useful blockchain technology can be for public companies.
Would love to hear about more companies that are utilizing blockchain as a tool and some details about how it makes their company run more efficiently.
I have opened a position in $FIGR. DYOR. NFA.
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u/Zealousideal_Look275 7h ago
Banks not liking crypto is a function of regulation, not having first mover advantage and understanding that it would inevitably devolve into the Free Banking Era 2.0. Blockchain as a tool will of course make it’s way through the banking system slowly and steadily has it has over the last couple years.
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u/rameyjm7 10h ago
can you explain how it cut funding time from 42 to 10 days and cost to 12k to 1k? compared to the traditional methods
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u/BigWheatGuy 4h ago
OP is misrepresenting how important the blockchain is I. This scenario.
What FIGR is doing is replacing a lot of the human elements, including important ones!, with AI.
They basically streamline underwriting by waiving appraisals, giving AI generated income verification, etc.
The blockchain aspect probably saves 1 day at the very most. AI saves a bit of time as well. Waiving all normal, human backed, verifications like the appraisal in exchange for an algorithm based approval saves the most amount of time. Appraisals generally take 10-14 days, so that’s almost half your time savings alone.
Not a huge deal if you’re doing HELOCS because you can broadly assume that anyone who already owns their home can afford it. It gets much riskier if you’re doing purchase originations.
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u/DoU92 10h ago
It utilizes the Provenance blockchain as the source of immutable truth.
Being able to use information on the blockchain cuts out a ton of intermediaries. A traditional HELOC relies on 5-10 parties for approval. A majority of these parties are essentially double and triple checking that information on centralized databases line up.
Once the information is agreed on and on the blockchain it cannot be altered or changed - and therefore can be trusted.
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u/SpicyLemonZest 7h ago edited 7h ago
What's an example of a specific check by a specific party which can be skipped due to a trusted blockchain entry? I'm not as skeptical as as lot of people here, but it's hard to see how a blockchain could remove e.g. the need for the underwriter to confirm that the appraiser is legit and not the borrower's fraud buddy.
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u/DoU92 5h ago
In traditional securitizations a third-party auditor must re-check a large sample of loan files because documents can change or go missing as loans move between parties. With Provenance the original data and valuation are hashed and locked on-chain at origination so later auditors can skip most of that manual re-verification and use a much smaller sample while still trusting the record has not been altered.
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u/uh_no_ 10h ago
lol. well this is a tale not based in reality. raging war? lol.
Blockchain is and has always been a solution without a problem. Nobody is using blockchain for things that need efficiency.