New York Community Bancorp Inc. and Figure Technologies Inc. today announced they have entered into a strategic relationship to collaborate on a series of blockchain initiatives.
The relationship envisions that both NYCB and Figure will allocate their respective resources into blockchain projects utilizing the Provenance Blockchain.
NYCB's current strategic priorities include leveraging the blockchain to support financial inclusion in banking and credit, reducing the cost and complexity within the mortgage business, and supporting a faster and less-expensive payments system. NYCB said it will Implement these initiatives in accordance with current relevant regulatory guidance. As part of this relationship, New York Community will make a direct equity investment in Figure.
"We are very excited to work with Figure on a number of initiatives using the Provenance Blockchain that are purpose-built for the highly regulated financial services industry,” said NYCB Chairman, President, & CEO Thomas R. Cangemi. “We chose Figure because of its focus on and knowledge of banking and payment systems. Our agreement with Figure is a part of NYCB's strategic focus on the operational and cost benefits that blockchain technology can bring to bear across many areas of banking.”
He added that NYCB is building “the necessary infrastructure to leverage numerous bank-relevant capabilities."
Figure, led by Co-Founder and FinTech industry pioneer Mike Cagney, helped develop Provenance, an open source blockchain technology, specifically designed for the financial services industry and used across multiple asset classes and markets.
Figure has developed multiple blockchain-based solutions in lending and payments, including the first loan securitization on Provenance Blockchain in March 2020.
"Figure's blockchain applications built on Provenance have the potential to significantly transform the financial services industry. We're pursuing innovative blockchain solutions in fields such as payments, lending, and exchanges," said Mike Cagney, CEO of Figure. "Last month we announced a strategic agreement with Apollo Global Management Inc. and now we are pleased to work with New York Community as an early adopter of Provenance.
NYCB and Figure also announced they will invest in the JAM FINTOP Blockchain fund, which will invest in and develop blockchain infrastructure and businesses.
Based in Hicksville, N.Y., NYCB is a leading producer of multi-family loans on non-luxury, rent-regulated apartment buildings in New York City, and the parent of New York Community Bank. As of June 30, 2021, it reported assets of $57.5 billion, loans of $43.6 billion, deposits of $34.2 billion, and stockholders' equity of $6.9 billion.
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