- Figure‘s Home Equity Line of Credit (Heloc) token has grown to over $15 billion, making it one of the world’s largest cryptocurrencies.
- The token’s ranking is highly controversial, as critics argue its lack of onchain trading activity and poor liquidity disqualify it from being compared to assets like Cardano‘s ADA.
- Data providers are adding nuance, with RWA.xyz now categorizing such blockchain-based real-world assets as “represented” rather than “distributed.”
- CEO Mike Cagney defends the token, stating the loans are on the public Provenance blockchain and traded daily.
A blockchain-based home equity loan token from fintech firm Figure has controversially surged into the top ranks of cryptocurrencies by market capitalization in recent months. The Figure Heloc token, representing loans against real estate, now exceeds $15 billion in value.
However, critics vehemently argue it shouldn’t be ranked alongside major tokens like the $16 billion Dogecoin. They point to the token’s minimal onchain use and poor liquidity as disqualifying factors.
Consequently, the pseudonymous head of DefiLlama, 0xngmi, questioned how billions are supposedly traded with few visible onchain transactions. “As it seems that a majority of holders are not transferring these assets with their keys, are they just mirroring their own internal database into the chain?” they asked.
Figure CEO Mike Cagney hit back at this criticism. He maintains the loans are on the Provenance blockchain and are traded every day.
Meanwhile, this debate emerges amid a Wall Street-driven surge in tokenizing traditional assets. Data provider DefiLlama tracks over $17 billion in these real-world assets, while RWA.xyz puts the figure above $23 billion.
In response, platforms are creating more nuanced categories. RWA.xyz now separates “distributed” assets from “represented” ones like Figure Heloc used for recordkeeping.
Adam Lawrence, co-founder of RWA.xyz, said legitimate, institutionally-focused companies will ultimately drive major crypto volume. Cagney argued in a September letter that blockchain brings unprecedented liquidity to historically illiquid markets like loans.
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