Figure Technology Solutions, in collaboration with Hastra, has announced the introduction of auto loans within their decentralized finance (DeFi) platform. This initiative aims to diversify the available tokenized consumer credit, extending beyond traditional home equity products. The announcement comes as part of an effort to enhance the accessibility of real-world assets (RWAs) for DeFi investors.
Democratized Prime, a decentralized lending marketplace operated by Figure Markets, will incorporate auto finance as its first new asset class. This addition is aligned with the platform's vision to create a comprehensive marketplace where various consumer credit types can be issued, traded, and funded on-chain. Michael Tannenbaum, CEO of Figure, emphasized the strategic planning that has led to this moment, revealing that the platform has originated over $22 billion in on-chain loans to date.
This development represents a critical experiment in determining whether tokenized private credit can successfully extend beyond home equity products into more conventional consumer lending markets. Such a shift could significantly enhance DeFi's capacity to provide real-world yields but also poses the potential risk of introducing credit challenges akin to those found in subprime lending sectors.
Hastra, originally launched in 2025 on the Solana network, is also broadening its reach by expanding into Ethereum-compatible (EVM) chains. This expansion is set to bring Hastra's existing credit systems, including exposure to home equity loans, to a wider DeFi ecosystem. A representative from Figure indicated that Hastra will initially launch its auto finance product on Solana, with plans to roll out on Ethereum around June.
Details of the Auto Loan Offering
The auto loan structure includes an impressive ~2.4x cash flow over-collateralization, with an anticipated starting interest rate of approximately 8.6%. The spokesperson clarified that because Democratized Prime operates on a Dutch auction basis, interest rates will reflect the total demand across the entire marketplace.
While the introduction of consumer loans on-chain could potentially transform lending practices, it does not mitigate the inherent risks associated with these assets. Non-prime auto loans, for instance, are often characterized by elevated default rates, particularly during economic downturns. This raises important considerations regarding regulatory frameworks, transparency, and the performance of blockchain-based credit products during volatile market conditions.
Positive Market Outlook for Figure
In recent evaluations, analysts from Bernstein have suggested that Figure may be undervalued, granting the blockchain-based lender an “Outperform” rating with a price target of $67—almost double its current trading price. This optimistic assessment is bolstered by growth in Figure's tokenized lending operations, which saw loan originations exceed $1.2 billion in March, while first-quarter volumes reached a notable $2.9 billion.
Figure went public on September 11, 2025, trading on the Nasdaq under the ticker symbol FIGR. As it forges ahead with its innovative DeFi offerings, the company is positioned to capture a significant share of the evolving landscape of decentralized finance.
With these advancements, the future of decentralized lending looks promising, albeit accompanied by essential questions about risk management and regulatory compliance in a rapidly changing financial environment.
Source: Cointelegraph News