Figure Technologies Inc. withdraws bank charter application to focus on growth opportunities
Figure Technologies Inc., a blockchain-oriented startup founded by ex-SoFi CEO Mike Cagney, has decided to retract its application for a nationwide bank charter. The company applied with the Office of the Comptroller of the Currency in 2020 with the aim of expanding their services across the country. However, they have now chosen to withdraw the application in order to focus on other growth opportunities with existing banking partners.
Key Points:
- Figure Technologies Inc. has withdrawn its application for a nationwide bank charter with the Office of the Comptroller of the Currency.
- The decision was made in order to concentrate on diversified growth opportunities with existing banking partners.
- The company has faced challenges in the blockchain and cryptocurrency industry, including fundraising and talent retention issues.
- As a result of these challenges, Figure has reduced its workforce by around 20% and laid off 90 employees.
- Figure is now focusing on its lending business and is taking steps toward an IPO in 2024.
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Figure Technologies Inc., founded in 2018 by Mike Cagney, utilizes blockchain technology to create various financial products, with loan origination being a key offering. Despite the challenges faced by the company, they continue to maintain a working relationship with Apollo Global Management Inc., indicating their commitment to pursuing partnerships.
Hot Take:
The decision by Figure Technologies Inc. to withdraw its bank charter application reflects the challenges faced by the company in the blockchain and cryptocurrency industry. By focusing on growth opportunities with existing banking partners, Figure is adapting to the economic downturn and continuing its work in blockchain and finance. The move towards an IPO in 2024 shows their determination to thrive in the face of adversity.
