Figure Technologies Inc. announced today that its subsidiary, Figure Securities Inc., has become a FINRA-approved broker-dealer.

Additionally, Figure Securities becomes an SEC-registered Alternative Trading System for digital securities custodied on Provenance blockchain. 

Provenance is a production blockchain for the financial services sector. The blockchain has over 180 current members using it for global financial transactions. Hash serves as the security token for Provenance, offering exposure to virtual equity in the blockchain. Provenance Blockchain is the administrator of Provenance. 

Secondary liquidity to private entities

The new alternative trading system will allow Figure’s blockchain-based cap table management solution to offer secondary liquidity to private entities. Also, asset issuers will be able to create security tokens on Figure’s blockchain, Provenance, which will be tradable in a liquid and bilateral way.

Another advantage is the ATS will allow Figure’s blockchain digital fund services solution in order to give fund managers the chance to offer secondary trading capabilities directly to fund their LPs. 

Alternative Trading Systems are used to bring securities buyers and sellers together. They generally perform the functions that are handled by a traditional exchange and, as of 2018, 20% of securities transactions take place on such ATSs.

FINRA is approved by the U.S. government to shield America’s investors by making sure all broker-dealers operate ethically. These broker-dealers are responsible for buying or selling securities. Sometimes they buy for themselves and other times on behalf of their customers. FINRA oversees more than a half-million such brokers nationally and handles billions of market events each day.