Fintech Lender’s Bank Bid Says ‘No Thanks’ on Deposit Insurance

Dec. 3, 2020, 3:39 PM

Figure Technologies Inc. is treading new regulatory ground in its mission to become a national bank with an untested business model centered on blockchain.

The San Francisco-based lender, co-founded by former SoFi Inc. chief executive officer Mike Cagney, has applied for a full-service national bank charter. The bank would provide payment services and loans using digital ledger technology, according to its Nov. 6 application.

While Figure plans to join the Federal Reserve system, it isn’t looking to get federal deposit insurance as nearly all banks do. That would allow Figure to avoid being subject to the Federal Deposit Insurance Corp.'s ...

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