Figure Technology is set to expand its decentralized finance (DeFi) offerings by introducing auto loans through its platform, Democratized Prime. This initiative represents a significant step in broadening access to tokenized consumer credit for DeFi investors, moving beyond traditional home equity products.
In an announcement made on April 14, 2026, Figure revealed that its lending marketplace, Democratized Prime, will incorporate auto finance as its inaugural new asset class. This is part of a broader strategy to create a comprehensive marketplace where various types of consumer credit can be issued, traded, and funded on-chain.
Michael Tannenbaum, the CEO of Figure, highlighted the significance of this development, stating, "We’ve been purposefully building toward this." He also noted that the platform has successfully originated more than $22 billion in on-chain loans, indicating robust growth in their lending operations.
This transition marks a pivotal test for the potential of tokenized private credit to extend beyond home-equity products into mainstream consumer lending. Such a shift could significantly enhance DeFi's access to real-world yields while simultaneously introducing the credit risks typically associated with subprime lending markets.
Hastra's Expansion to EVM Chains
In conjunction with introducing auto loans, Hastra is also expanding its operations to include Ethereum-compatible (EVM) chains. This expansion aims to broaden access to a larger DeFi ecosystem and facilitate the introduction of its existing credit system, which includes home equity loan products, to new blockchain networks.
A spokesperson for Figure confirmed that Hastra will initially launch its auto finance product on Solana before transitioning to Ethereum around June. The spokesperson elaborated on the auto structuring, stating, "The auto structuring includes approximately 2.4x cash flow over-collateralization, with an expected starting interest rate of around 8.6%." They added that since Democratized Prime operates via a Dutch auction mechanism, interest rates would reflect the total demand across the entire marketplace.
Despite the promising development, it is essential to recognize that bringing consumer loans on-chain does not eliminate the underlying risks associated with these assets. Non-prime auto loans, in particular, are known to have higher default rates, especially during challenging economic conditions.
Concerns regarding regulatory compliance, transparency, and the operational performance of these blockchain-based credit products during periods of market stress remain prevalent.
Positive Market Outlook for Figure
Earlier this month, analysts from Bernstein issued a report suggesting that Figure may be undervalued, assigning the blockchain lender an “Outperform” rating with a price target of $67, nearly double its recent trading price. This optimistic outlook is attributed to significant growth in its tokenized lending business, which saw loan originations surpass $1.2 billion in March, with first-quarter volumes reaching $2.9 billion.
Figure made its public debut on September 11, 2025, when it listed on the Nasdaq under the ticker symbol FIGR. The market's response to its recent initiatives, including the auto loan launch, will be closely monitored as it seeks to redefine consumer credit access in the DeFi landscape.
As the DeFi sector continues to evolve, the integration of consumer loans such as auto financing could pave the way for more diverse investment opportunities while addressing the complexities of credit risk management in a decentralized environment.
Source: Cointelegraph News