Figure’s Home Equity Line of Credit token has grown to over $15 billion in recent months and now ranks as the 10th-largest crypto on market trackers, after issuances tied to loans against U.S. real estate swept onto the Provenance chain. The token’s rising supply has prompted debate about whether it belongs alongside actively traded cryptocurrencies.
Critics say the token lacks meaningful onchain liquidity and regular trading, and they compare it unfavorably with tokens like Cardano’s ADA and Dogecoin. As the pseudonymous head of DefiLlama noted, said “We’re unsure how $12 billion in assets are being traded when there are so few assets in the chain to trade them against.”
Observers warn that large cash holders or derivatives firms could mint tokens backed by private assets while retaining control over supply and trading. This structure can distort rankings that treat issued but non-tradable tokens like circulating crypto.
Figure’s CEO, Mike Cagney, defended the program on social media and in a company letter, calling the tokens onchain assets and noting new uses like collateral in markets (stated; stated). He wrote that loans are recorded on Provenance and trade daily.
Interest in tokenised real-world assets has grown, with about $17 billion tracked by DefiLlama and over $23 billion listed by RWA.xyz. In response to debate, RWA.xyz now separates onchain assets into “distributed” and “represented,” placing Figure Heloc in the latter group, and its co-founder said they are building clearer metrics (said).
