Unchained Lessons From A Successful Tokenization Project & What Market Structure Reveals About Trump-Linked WLFI’s False Promises: Bits + Bips - Ep. 986
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Dec 20, 2025 
Mike Cagney, CEO of Figure Technology Solutions, shares insights on why many tokenization projects falter, discussing his company's innovations in mortgage tokenization. He argues that big banks are now at the forefront of blockchain development. Jason Brett, a former banking regulator, highlights how President Trump's World Liberty Financial may breach regulatory frameworks, raising questions about its centralized nature despite claims of decentralization. They delve into the implications for DeFi, governance, and the need for a clearer market structure.
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HELOC As A Mortgage Disruptor
- HELOCs in first-lien position can be cheaper and more profitable when originated with blockchain efficiencies.
- Figure captured >100 bps savings enabling profitable sub-$300k mortgages where incumbents couldn't compete.
Put Loan Data On-Chain To Cut Costs
- Ingest full loan data immutably on-chain to cut audit and reconciliation costs for securitizations.
- Use an on-chain registry to speed warehouse pledging and reduce counterparties' reconciliation staff time.
Liquidity Needs Market Structure, Not Just Tokens
- Tokenizing assets doesn't create liquidity by itself; liquidity requires ubiquity, homogeneity and market-making.
- Figure achieved secondary trading because on-chain servicing and homogeneous pools enable real-time performance visibility.