Figure Heloc

FIGR_HELOC represents tokenised home equity lines of credit — loans secured against residential property, originated and recorded on-chain. It is one of the few tokenised real-world asset products where the underlying is consumer lending rather than government securities.

Home equity lending is secured consumer credit

A HELOC is a credit line secured by the borrower's home. If the borrower defaults, the lender has a claim on the property, subordinate to the primary mortgage. That security makes it materially safer than unsecured consumer credit and materially riskier than a government bill.

The 2008 lesson is directly relevant

Residential property-backed lending performed catastrophically when house prices fell and defaults correlated across the whole market. Underwriting standards and structures differ now, and the fundamental exposure — to house prices and household finances moving together — is the same one.

What blockchain origination changes

Recording loan origination and servicing on-chain improves auditability and transfer speed relative to paper-based processes that dominate mortgage markets. That is a genuine operational improvement, and it does not change the credit quality of the loans themselves.

Valuation is not directly observable

Unlike a Treasury with a live market price, a portfolio of home equity loans is valued by model using assumptions about defaults, prepayment and property values. Those assumptions are where structured credit surprises come from, and holders should know what they are.

Who it suits

This fits eligible investors who understand consumer credit and want yield above government paper with property security. Anyone seeking a cash-equivalent position should hold a Treasury product instead — this is a credit investment.