Most crypto exchanges force you to choose: either you get regulatory safety with high fees and custodial risk (looking at you, Coinbase), or you get low fees and self-custody but live in fear of the next SEC lawsuit (hello, Uniswap). Figure Markets claims to break this trade-off. It’s a blockchain-native platform built on Provenance Blockchain that offers zero trading fees, true self-custody via MPC wallets, and-crucially-an SEC-registered yield product.
But does it actually deliver? I dug into the numbers, tested the onboarding flow, and analyzed the yield mechanics to see if Figure is a legitimate institutional-grade option for retail users or just another fintech hype cycle. Spoiler: The profitability metrics are real ($29 million profit in H1 2025), but the asset selection is tight, and customer support lags behind industry giants.
What Exactly Is Figure Markets?
Founded by Mike Cagney (ex-SoFi CEO) and launched in 2024, Figure Markets isn’t just another spot trading app. It’s a unified ecosystem where you can trade major cryptocurrencies, borrow against them, and earn yield from real-world assets (RWAs) without moving funds between different platforms. Unlike traditional centralized exchanges (CEXs) that hold your keys, Figure uses multi-party computation (MPC) technology. This means you retain control of your private keys while still accessing regulated financial products.
The platform operates as a centralized entity registered in the US, headquartered in San Francisco. Its backbone is the Provenance Blockchain, a purpose-built proof-of-stake chain designed specifically for financial services. This infrastructure allows Figure to tokenize real-world assets like home equity loans and auto loans, bringing traditional finance yields onto the blockchain.
Key Features That Set Figure Apart
If you’re used to Binance or Kraken, Figure feels different because it prioritizes compliance and integration over volume. Here’s what stands out:
- Zero Trading Fees: Yes, really. Major crypto pairs have no maker/taker fees. Revenue comes from other streams, not transaction costs.
- YLDS Stablecoin: This is the first SEC-registered yielding stablecoin. As of mid-2025, it pays ~3.85% APY directly to holders. Compare that to USDC or USDT, which pay zero unless you lend them out on risky platforms.
- Crypto-Backed Loans: You can borrow up to 75% LTV against your Bitcoin or Ethereum holdings at fixed rates. No credit checks. This lets you access liquidity without selling your crypto and triggering taxes.
- RWA Yield Products: Targeted returns of 8.5% APY come from tokenized real-world assets, primarily home equity lines of credit (HELOCs).
How Figure Markets Compares to Competitors
You’re probably wondering how this stacks up against the big players. Let’s look at the hard data.
| Feature | Figure Markets | Coinbase | Binance | Uniswap |
|---|---|---|---|---|
| Trading Fees | 0% | 0.05% - 0.60% | 0.1% (discountable) | ~0.3% (gas + LP) |
| Custody Model | Self-Custody (MPC) | Custodial | Custodial | Self-Custody |
| Regulatory Status | SEC Registered (YLDS) | Publicly Traded | Global (Varies) | Unregulated Protocol |
| Stablecoin Yield | 3.85% (YLDS) | ~4-5% (USDC) | ~4-6% (various) | Variable (DeFi) |
| Asset Selection | Majors + RWAs | 200+ Assets | 350+ Assets | Thousands (ERC-20) |
| Loan Availability | Fixed Rate, No Credit Check | Limited/None | Yes (Variable) | No (Direct P2P only) |
The biggest win for Figure is the combination of self-custody and regulatory clarity. Most self-custody options (like MetaMask + Uniswap) offer zero protection if you lose your seed phrase or interact with a malicious contract. Figure’s MPC wallet mitigates this by splitting key shards across multiple devices/servers, so no single point of failure exists. Meanwhile, Coinbase holds your keys but charges fees and doesn’t offer the same depth of RWA integration.
The Yield Engine: Where Does the Money Come From?
This is the critical question. If Figure pays 8.5% APY on RWA products and 3.85% on YLDS, who’s paying for it? It’s not magic; it’s traditional lending.
Figure’s parent company, Figure Technologies, has been originating digital mortgages and HELOCs since 2018. They use the Provenance Blockchain to tokenize these loans. When you deposit funds into Figure’s yield products, you’re essentially providing capital to these loan pools. Borrowers pay interest on their home equity loans, and that interest flows back to you.
The Risk: Blockchain analyst David Gerard pointed out in September 2025 that "home equity loans face significant default risks during economic downturns." If housing prices crash and borrowers default, yields could drop. Currently, 87% of Figure’s yield products are backed by HELOCs, creating concentration risk. However, Figure’s profitability ($29 million in H1 2025) suggests their underwriting models are holding up well so far.
Onboarding and User Experience
Getting started takes about 15 minutes, but verification can drag. Here’s the typical flow:
- Sign Up: Email and password. Easy.
- KYC Verification: Upload government ID and take a selfie. Trustpilot users report an average wait time of 2.3 business days. This is slower than Coinbase’s 1.5-day average but faster than some offshore exchanges.
- Funding: US residents can link bank accounts for instant ACH transfers up to $25,000. International users must deposit USDC via Ethereum addresses, which adds gas fees and complexity.
- Activation: Once verified, you can start trading or staking immediately.
The mobile app (iOS/Android) and web interface are clean but lack the advanced charting tools power traders expect. If you need Fibonacci retracements or order book depth heatmaps, you’ll miss them here. The platform is designed for "set it and forget it" investors, not day traders.
Pros and Cons: The Honest Take
No platform is perfect. Here’s the breakdown based on user feedback and technical audits:
Pros
- Genuine Self-Custody: You own your keys. CertiK audited the MPC architecture in August 2025 and rated it "enterprise-grade security."
- Regulatory Clarity: The YLDS stablecoin is SEC-registered. This reduces the risk of sudden shutdowns or lawsuits freezing your funds.
- Zero Fees: Keeping more of your money matters when compounding.
- Integrated Ecosystem: Trade, borrow, and earn in one place without bridging chains.
Cons
- Limited Asset Selection: Focuses on BTC, ETH, SOL, and a few others. No meme coins, no obscure altcoins. If you want 350+ assets, go to Binance.
- Slow Customer Support: Average response time is 18.5 hours. Industry average is 9.2 hours. For a platform handling billions, this is concerning.
- Concentration Risk: Heavy reliance on HELOC-backed yields. Diversification is limited compared to global money market funds.
- International Friction: Non-US users face hurdles with deposits and withdrawals due to current banking integrations.
Who Should Use Figure Markets?
Figure isn’t for everyone. It’s best suited for:
- Long-Term Holders: If you plan to HODL BTC/ETH for years and want to earn yield without selling.
- Tax-Conscious Investors: Using crypto-backed loans instead of selling avoids capital gains tax events.
- Compliance-Focused Users: If you’re worried about the SEC cracking down on unregistered securities, Figure’s registered status offers peace of mind.
- Institutional-Lite Clients: With minimums of $100k for premium pools, it bridges the gap between retail and institutional finance.
It’s not ideal for active day traders needing advanced order types, or degens chasing the latest memecoin pump.
Final Verdict: Is Figure Markets Worth Your Money?
Figure Markets represents a maturing phase of cryptocurrency adoption. It’s not trying to be the Wild West anymore; it’s trying to be Wall Street on rails. The zero-fee model combined with SEC-compliant yields is a powerful value proposition for conservative crypto investors.
However, the limited asset range and slower support mean it won’t replace your main exchange yet. Think of Figure as a specialized tool in your portfolio-a place to park core holdings and generate safe(ish) yield-rather than your primary trading hub. Given its profitability and growing institutional adoption via Figure Connect, it’s likely here to stay.
Is Figure Markets safe?
Figure Markets uses multi-party computation (MPC) wallets, meaning you retain control of your private keys. The platform was audited by CertiK in August 2025, which validated its security architecture. Additionally, its yield products are backed by real-world assets (primarily home equity loans) rather than purely speculative crypto collateral, reducing volatility risk.
Does Figure Markets charge trading fees?
No, Figure Markets currently offers zero trading fees on major cryptocurrency pairs. The platform generates revenue through other channels, such as spreads on certain transactions and interest margins on loans, allowing it to pass savings directly to traders.
What is the YLDS stablecoin?
YLDS is a USD-backed stablecoin issued by Figure Markets. It is notable for being the first SEC-registered yielding stablecoin. As of mid-2025, it pays approximately 3.85% APY directly to holders, unlike traditional stablecoins like USDC or USDT which typically require lending out funds to earn interest.
Can I borrow against my crypto on Figure?
Yes, Figure offers crypto-backed loans with Loan-to-Value (LTV) ratios of 50% and 75%. These loans feature fixed interest rates and do not require credit checks. This allows users to access liquidity without selling their underlying cryptocurrency positions.
Which countries can use Figure Markets?
Figure Markets is primarily focused on US residents, offering seamless ACH bank transfers. International users can participate by depositing USDC via Ethereum addresses, though they may face higher friction and gas fees compared to US users. SEPA and SWIFT transfer options are planned for expansion in early 2026.
