Transaction Marks the First of $100 Million in Loan Sales Expected By Private Lender Pacific Private Money
SAN FRANCISCO–(BUSINESS WIRE)–Figure Technologies, Inc. (Figure™), a leader in transforming financial services through the power of blockchain technology, today announced that Pacific Private Money and Saluda Grade have completed the first third-party trade on Provenance blockchain, demonstrating significant efficiencies in the $400 billion annual loan origination and trading process.
“This is a huge step forward for blockchain technology because we’ve once again demonstrated the speed and cost savings Provenance can bring to the asset origination and capital markets ecosystem,” said Mike Cagney, CEO and Co-founder of Figure. “We were able to execute this transaction instantly, not the 20 days it would have taken before Provenance, meaning we can drive significant cost savings and efficiencies across the entire $400 billion Real Estate Loan Market.”
This is the first of a minimum of $100 million in loan origination and sales transactions that Pacific has committed to making on Provenance over a 12-month period. Pacific Private is currently onboarding all of its loans to Provenance via the newly released software development kit.
“The short duration transitional bridge loan market is the perfect asset class to benefit from Provenance’s operational efficiencies, as lenders like Pacific Private Money can digitally originate and quickly distribute loan production seamlessly to institutional investors,” said Ryan Craft, CEO and Founder of Saluda Grade. “Our company is excited at the value creation that Provenance can deliver, and we hope to onboard our whole portfolio of alternative lenders to the platform.”
Saluda Grade, a boutique advisory and asset management firm focused on the private non-bank real estate finance sector, purchased Pacific Private Money loans into their Lake Summit Alternative Loan Trust on behalf of third-party investors. The transaction was completed on May 1.
A Saluda Grade Ventures portfolio company, Pacific Private Money has been focused on tapping the institutional capital markets to grow their origination volume and investor base. Over the last year PPM has seen approximately a 40 percent annual growth rate in their overall production across business purpose and owner occupied bridge production.
“We couldn’t be more excited to be at the forefront of driving the future of asset origination and trading,” said Mark Hanf, CEO of Pacific Private Money. “Having been in the financial industry for years, it was thrilling to see firsthand how this technology is going to transform financial products of all kinds, bringing speed and cost savings across the entire financial landscape.”
Provenance is the leading production blockchain for financial services, with already more than $1 billion in assets having been originated, serviced, financed and now securitized on the blockchain platform. In March, Figure executed the first ever securitization backed by loans originated, serviced, financed and sold on blockchain. The collective benefit of blockchain to the parties over the lifecycle of the loans totalled over 100 basis points, representing a potential savings of more than $30 billion in the $3 trillion annual securitization market.
Provenance has now demonstrated more real use cases, using real capital and real financial clients to deliver real impact across more financial areas than ever before seen on blockchain. Learn more at www.provenance.io.
Figure Technologies is transforming the lending experience for consumers through the power of blockchain technology. Figure can take loans from application to funding in days, not the weeks-long process offered traditionally. Their products eliminate time consuming physical property appraisals and inspections, requires zero paperwork and offers five star customer service. Currently Figure offers HELOCs, Mortgage Refinancing and Student Loan Refinancing and plans to continuously expand its portfolio of financial products. Figure processes its loans through Provenance, the company’s proprietary blockchain platform that will soon also process loans for leading financial companies around the world. The company was founded by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion dollar business under his leadership as CEO.
Provenance.io is the leading blockchain for the financial services industry. Provenance is in production today and used by a variety of financial institutions. Hash is the underlying token on Provenance and provides a means for distribution of economics and governance. Provenance.io is administered by Provenance Blockchain, Inc., an entity that serves at the pleasure of the Hash holders. Learn more at www.provenance.io.
Sutherlandgold for Figure