BitGo and Figure Execute First Tokenized Equity Trades
BitGo and Figure have completed the first-ever tokenized equity trades on a regulated alternative trading system. The trades, which offer immediate settlement and transparent ownership records, represent a milestone for developing blockchain-native market infrastructure. This technology could potentially unlock liquidity and reduce settlement risk for traditionally illiquid private market assets.
- The trades were conducted on Figure's Onchain Public Equity Network (OPEN), an alternative trading system that launched in February 2026 and operates on the Provenance Blockchain. This platform enables companies to issue, trade, and settle equity directly on the blockchain. - BitGo Bank & Trust, N.A., a federally chartered trust bank, serves as the qualified custodian for the assets traded on the OPEN network, ensuring a separation between the custody of assets and the execution of trades. This structure is designed to mitigate counterparty risk, a key consideration for institutional investors. - Figure's Executive Chairman is Mike Cagney, and BitGo's CEO is Mike Belshe. Cagney highlighted that the partnership brings institutional-grade controls to the on-chain equity network, while Belshe emphasized BitGo's role as an independent trust layer to reduce risk and increase transparency. - This model of tokenized equity operates within existing U.S. securities laws, with Figure's subsidiary, Figure Securities, Inc., being a FINRA/SIPC member that operates the Alternative Trading System (ATS). This is a crucial distinction from trading on unregulated decentralized exchanges. - The underlying technology bypasses the traditional Depository Trust & Clearing Corporation (DTCC) infrastructure, allowing for real-time (T+0) settlement of trades directly on the blockchain, as opposed to the multi-day clearing cycles of conventional markets. - Figure has a background in blockchain-native finance, having originated over $22 billion in home equity financing through its ecosystem. The company is now applying similar blockchain principles to the equity capital markets. - The broader market for tokenized securities is projected to be significant, with some analysts, such as those at Boston Consulting Group, estimating a global market capitalization of at least $16 trillion by 2030. - Competitors in the asset tokenization space include platforms like Securitize, Polymath, and Fireblocks, which also offer services for issuing and managing digital securities.
