Key Takeaways:
Cross River Bank entered a forward-flow agreement to purchase up to $250 million in loans originated through Figure Technology Solutions' crypto collateral program, the companies said June 4.
The arrangement provides Figure, a Nasdaq-listed blockchain capital marketplace, with committed funding to meet rising consumer demand for borrowing against digital asset holdings. Under the model, borrowers secure US dollar loans while retaining ownership of their cryptocurrencies, using them as collateral.
"Crypto-backed lending provides a lower cost financing option versus the alternatives," said Noah Cooper, chief investment officer and head of Capital Solutions Group at Cross River. "We are thrilled to support Figure as this financing tool continues to mature."
The forward-flow agreement enables Cross River's Principal Finance Group to purchase up to $250 million of loans originated through Figure's platform. Such structures are common in fintech and specialty finance markets, providing lenders with committed capital while creating a predictable outlet for originated assets.
Rahul Jha, head of Principal Finance at Cross River, said the commitment reflects the company's confidence in both the asset class and Figure's lending platform, and is designed to support growing consumer demand for crypto-backed financing.
Figure operates a blockchain-native ecosystem connecting loan origination, funding, sales and trading. More than 380 partners use its platform, and the company has facilitated over $25 billion in home equity originations, making it the largest non-bank provider of home equity lines of credit. Its crypto-backed loan product has seen strong adoption since launch, according to Todd Stevens, chief capital officer at Figure.
"We're proud to welcome Cross River as a financing partner," Stevens said.
The deal reflects a broader trend of traditional financial institutions increasing participation in digital asset markets through lending and infrastructure partnerships. As regulatory frameworks evolve and consumer adoption of digital assets expands, market participants are exploring ways to integrate blockchain-based financial products into mainstream services.
Cross River, a technology-focused financial institution, provides embedded payments, lending, card and crypto infrastructure to fintech companies. The bank's real-time banking technology supports financial services used by millions of consumers and businesses across the US.
This article is for informational purposes only and does not constitute investment advice.
