Figure Technologies partners with Apollo to list funds on blockchain

Figure Technologies partners with Apollo to list funds on blockchain

Apollo Global Management, an alternative asset manager firm, has reportedly declared its partnership deal with American fintech company, Figure Technologies on blockchain initiatives. The deal will see listing of funds on blockchain as well as asset securitization and digital platforms.

Speaking on the move, John Zito, Senior Partner & Deputy CIO of Credit, Apollo, said that the collaboration extends their firm’s strategy on working with leading fintech firms to seek the cost and operational benefits of blockchain and other technologies.

Reportedly, Figure established the provenance blockchain which is used for multiple financial applications like asset-backed securities (ABS), managing cap tables for stocks and, payments. The company started by issuing mortgages, specifically Home Equity Loans and Home Equity Lines of Credit (HELOCs), and it developed a digital marketplace for selling HELOCs using the Provenance blockchain.

Since then, it has expanded to enable others to issue loans and has created a market for funds and equities after getting SEC clearance as an Alternative Trading System (ATS).

Reportedly, Figure secured $200 million at a $3.2 billion valuation in May. Meanwhile, Apollo currently manages around $463 billion in assets, out of which $323 billion is credit, and is very serious about blockchain technology. It also has a partnership with Motive Partners, a fintech-focused private equity firm.

Peter Hiom of Motive Partners was the Deputy CEO of the Australian Securities Exchange (ASX) until last month, where he was responsible for the ASX's CHESS blockchain-based post-trade solution, which is being developed in collaboration with Digital Asset.

Meanwhile, there are quite a few blockchain and fund-related initiatives, most of which, unlike Figure, are centered in Europe. For example, the Luxembourg Stock Exchange launched FundsDLT, with backing from Credit Suisse, Clearstream, and Natixis. While Calastone, a fund distribution platform owned by Carlyle, has been using blockchain for order routing since 2019. In addition, Allfunds is collaborating with ConsenSys on a blockchain project.

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