New York Community Bancorp (NYCB) has entered into a strategic relationship with Figure Technologies to work together on blockchain initiatives, according to a press release.
The companies will be using their relationship to add more financial inclusion in banking and credit, cut down costs in the mortgage business and engineer a faster, more inclusive payments system, the release stated.
Figure is headed by Mike Cagney, a co-founder of the company, who was also a FinTech industry pioneer, according to the release. He helped develop Provenance, which is an open source blockchain technology intended to be used for the financial sector to help multiple asset classes and markets.
NYCB Chairman, President and CEO Thomas R. Cangemi said in the release the partnership plans to expound upon blockchain’s potential in the banking sphere.
“NYCB recently stood up a Provenance node and, with Figure’s assistance, is building the necessary infrastructure to leverage numerous bank-relevant capabilities,” he said in the release.
Figure has developed several different blockchain-based lending and payments solutions, the release stated, including the first incarnation of the loan securitization feature on Provenance blockchain in March 2020.
“Figure’s blockchain applications built on Provenance have the potential to significantly transform the financial services industry,” Cagney said in the release. “We’re pursuing innovative blockchain solutions in fields such as payments, lending and exchanges. Last month, we announced a strategic agreement with Apollo Global Management, and now we are pleased to work with New York Community as an early adopter of Provenance.”
Figure was valued at $3.2 billion in May after raising $200 million in a Series D round.
Financial institutions (FIs) are increasingly adopting blockchain solutions for processing transactions because of the technology’s ability to process in real time, save on costs and keep permanent records of exchanges.