Decentralized finance (DeFi) takes another step toward mainstream integration as Figure and Hastra announce the addition of auto loans to their tokenized credit platform. This new asset class marks the first expansion for Democratized Prime, Figure's decentralized lending marketplace, which aims to facilitate the issuance, trading, and funding of various consumer credit types on-chain.
Over $22 Billion in On-Chain Loans Originated
Figure CEO Michael Tannenbaum revealed that the platform has originated over $22 billion in on-chain loans to date, covering mortgages, personal loans, and now auto loans. The new offering enables DeFi investors to gain exposure to auto finance through tokenized assets tied to underlying vehicle loans. Democratized Prime serves as a hub for institutional and retail participants to trade these tokenized credit instruments, potentially improving liquidity and transparency in the auto lending market.
Hastra‘s Cross-Chain Ambitions: Solana to Ethereum
Hastra, initially deployed on Solana, plans to launch the auto loan product on its native chain first and then expand to Ethereum and other EVM-compatible networks by June 2026. This move aims to tap into Ethereum’s vast DeFi ecosystem and attract more liquidity providers. The cross-chain strategy reflects a growing trend among RWA issuers to diversify their blockchain footprints and reduce single-chain dependency.
Risks and Regulatory Hurdles
The auto loans in question are primarily categorized as non-prime, meaning they target borrowers with less-than-ideal credit scores. Such loans historically exhibit higher default rates and stricter regulatory scrutiny. Analysts caution that economic downturns or rising interest rates could pressure the underlying collateral, affecting the tokenized assets‘ value. Additionally, the legal status of tokenized securities varies across jurisdictions, requiring Figure and Hastra to navigate a complex compliance landscape.
Market Performance and Institutional Views
Despite Figure’s stock falling approximately 12% year-to-date, Bernstein analysts maintain an “Outperform” rating with a $67 price target. They cite the rapid growth of Figure‘s tokenized lending business and the potential for further RWA adoption. Meanwhile, ETH and SOL prices saw modest gains (+1.46% and +0.73% respectively), reflecting broader market confidence. As Figure and Hastra move ahead, the success of their auto loan offering will depend on liquidity, cross-chain execution, and regulatory clarity.