Cross River commits $250 million for Figure's crypto-backed loans

Cross River Bank announced a forward-flow agreement with Figure Technology Solutions (NASDAQ: FIGR) to purchase up to $250 million in crypto-backed loan assets, according to a press release statement.

The agreement enables Figure's customers to access USD liquidity using their cryptocurrency holdings as collateral without selling their digital assets. Cross River's Principal Finance Group will provide the committed capital to support Figure's crypto-backed lending operations.

"For many consumers who own digital assets, crypto-backed lending provides a lower cost financing option versus the alternatives," said Noah Cooper, Cross River's CIO and Head of Capital Solutions Group.

Figure operates a blockchain-native capital marketplace for loan origination, funding and trading. The company and its partners have originated over $25 billion in home equity loans. Todd Stevens, Figure's Chief Capital Officer, described Cross River's involvement as validation of the crypto-backed lending model's success.

Cross River, a technology infrastructure provider offering embedded financial solutions, serves fintech companies through its Principal Finance Group, which provides warehouse lines, seasoning facilities and forward-flow purchase solutions.

Figure's crypto-backed loans are offered through Figure Lending LLC and are not available in several states including DC, ID, IL, KY, MD, MS, SD, TX, VT and VA. In New York, loans are provided through Figure Markets Credit LLC.

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