Figure Technology Solutions (NASDAQ: FIGR) announced the launch of Figure Forge, a platform designed to convert private credit assets into standardized tokens for use in decentralized finance protocols. The system transforms pools of loans into participation tokens that can serve as collateral in DeFi lending markets.

Figure Forge addresses technical challenges that have prevented private credit assets from functioning effectively in DeFi protocols. Traditional loans carry varying credit profiles, loan-to-value ratios, and balances that make them difficult to use as standardized collateral. The platform pools similar loans and creates uniform $1 participation tokens backed by the underlying loan assets.

The system provides four functions: homogenizing diverse loans into standardized tokens, pricing assets through Figure's capital markets desk, providing liquidity through a limit order book on Provenance Blockchain, and enabling token redemption for fiat currency or stablecoins.

Figure operates as a direct lender and has originated billions of dollars in loans on the Provenance Blockchain. The company maintains a capital markets desk that prices loans for securitization and provides real-time pricing for the Forge platform. Figure also supports liquidity through its own balance sheet rather than relying on external market makers.

The first external partner using Figure Forge is Agora Data, a fintech company focused on auto loans. Agora's loans will be converted into participation tokens through the Forge platform, with Figure providing liquidity support on Provenance Blockchain. This partnership is expected to create a lending pool with underlying collateral yielding more than 8%.

Figure's platform includes three operational layers: the Figure infrastructure layer containing the Forge engine, Figure Markets for institutional lending pools, and Hastra for multi-chain distribution across Solana and Ethereum Virtual Machine networks.