Investing in the Future: Sixth Street’s $200M Bet on Blockchain Magic! 💰✨

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In a move that could only be described as “let’s throw some money at the future and see what sticks,” the global investment firm known as Sixth Street has decided to invest a whopping $200 million in Figure Technology Solutions. Yes, that’s right, a lender that’s decided that blockchain is the magic wand that will make lending as easy as pie (or at least easier than explaining to your grandmother what a blockchain is). 🥧

According to a report from the ever-reliable Wall Street Journal (which, let’s be honest, is about as reliable as a cat on a hot tin roof), this investment will allow Figure to issue up to $2 billion in new loans. That’s a lot of zeros, and it’s also a great way to expand into other lending markets—because who doesn’t want to lend money to more people? It’s like giving out candy, but with a lot more paperwork. 🍬

Figure Technology, in its infinite wisdom, primarily issues home improvement loans. You know, for when you decide that your house needs a new roof, or perhaps a moat. They also dabble in business loans and debt consolidation services, because why not? And let’s not forget their personal lending business, which allows cryptocurrency investors to take out collateralized loans. Because nothing says “trust me” like using digital coins as collateral. 💸

According to their website (which is probably as accurate as a fortune cookie), they’ve served over 100,000 households across 47 US states. That’s a lot of happy customers, or at least a lot of people who are too polite to complain. 😄

Now, if you’re wondering about the name similarity, Figure Technology is not to be confused with Figure Markets, a digital asset exchange that recently got the green light to launch a yield-bearing US dollar stablecoin. It’s like a family reunion where everyone has the same name but different jobs. Figure Technologies decided to spin off its lending division in March 2024, creating a new parent entity called Figure Technology Solutions. Because who doesn’t love a good rebranding? 🎉

For Sixth Street, this investment is like adding a new flavor to their fintech ice cream sundae. In December, they backed consumer lending company Affirm in a $4 billion deal. That’s a lot of sprinkles on that sundae! 🍦

Blockchain funding deals set to rise in 2025

Despite the economic landscape looking like a game of Jenga played by a toddler, venture capital firms are expected to allocate more capital to blockchain startups this year. The positive catalysts include a pro-crypto Trump administration and the potential for lower interest rates, especially in the second half of 2025. Because nothing says “let’s invest” like a little political chaos! 🎢

According to PitchBook (which sounds like a fancy name for a book of pitches), venture capital investments in the blockchain and cryptocurrency sector are expected to reach $18 billion this year, up from $13.6 billion in 2024. A recent report from Galaxy Research also tipped blockchain venture deals to rise by 50% year-over-year. It’s like watching a balloon inflate—exciting, but you just hope it doesn’t pop! 🎈

Jeffrey Hu, head of investment research at HashKey Capital, told CryptoMoon (which sounds like a place where you’d find a lot of very confused astronauts) that venture firms are increasingly focused on consumer-oriented applications of blockchain technology. Some of the most promising use cases include decentralized physical infrastructure networks (DePINs) and real-world assets. Because if there’s one thing we need, it’s more acronyms! 🚀

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2025-02-27 19:50