Figure Expands Tokenized Credit Suite with Launch of Onchain Auto Loans

Figure has announced the addition of auto loans to its Democratized Prime decentralized lending marketplace, marking a strategic expansion of its tokenized credit capabilities. This initiative represents the first new asset class for the platform, which seeks to create a comprehensive onchain ecosystem for the issuance, trading, and funding of various consumer credit products. The expansion coincides with the growth of Hastra, Figure's RWA extension. Originally launched on the Solana blockchain, Hastra is now expanding to Ethereum-compatible (EVM) chains, starting with Ethereum. According to company representatives, the auto finance product is scheduled to debut on Solana before rolling out to Ethereum around June. Financial momentum for the firm remains strong. CEO Michael Tannenbaum noted that the platform has originated over $22 billion in onchain loans to date. Recent data highlights this growth, with loan originations exceeding $1.2 billion in March and total first-quarter volumes reaching $2.9 billion. While the move increases access to real-world yields for DeFi participants, it introduces inherent risks associated with consumer credit. Specifically, non-prime auto loans may carry higher default rates during economic downturns, raising questions regarding transparency and performance under market stress. Despite these risks, analysts at Bernstein have assigned Figure (FIGR) an 'Outperform' rating with a $67 price target, nearly double its recent trading price.