Dechert Advises Figure Technologies on Provenance.io Blockchain Security Token Offering
July 12, 2019
Dechert LLP advised Figure Technologies, Inc. (“Figure”) on the US$20 million security token offering successfully completed by Provenance Blockchain, Inc. (“PBI”). PBI is the administrator for the Provenance.io blockchain, which was originally built by Figure. The Reg D private placement included broad participation from both blockchain and traditional technology investors. Proceeds from the offering will go to staff PBI and finance operations including compliance, technology and business development, as adoption of Provenance.io grows.
Figure is a leading fintech company in both the home equity lending and blockchain space founded by former SoFi CEO Mike Cagney. Provenance.io is the blockchain protocol created by Figure to originate, finance and sell its HELOC loans to banks, asset managers and credit funds.
The security token on Provenance.io, Hash, is the underlying equity of the blockchain. Hash serves two purposes: it provides a means to distribute fees paid into Provenance, and it provides a governance voting structure for PBI. There are 100 billion Hash tokens, and Hash can neither be created or destroyed.
The Dechert team advising Figure includes financial services partner Timothy Spangler and associate Andrew Schaffer and global finance partner Ralph R. Mazzeo. In May, Dechert assisted Figure Technologies, Inc. on its closing of a US$1 billion asset-based financing facility custodied on its Provenance.io blockchain.
“The successful completion of PBI’s private placement of Hash is an important step forward in the development of the Provenance.io blockchain that raised many novel legal and regulatory issues,” observed Mr. Spangler. “The offering also demonstrates the steady progress blockchain technology is making towards eventually reshaping all financial products and financial transactions.”
About Dechert
Dechert is a leading global law firm with 26 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.
Related Professionals
