How Blockchain & Bitcoin Are Reshaping Wall Street | Mike Cagney

— Mike Cagney took Figure public and believes blockchain-native digital securities unlock massive value through reduced costs, better liquidity, and new financing opportunities in capital markets.

— Figure built infrastructure for originating, securitizing, and trading loans on blockchain, then created direct-to-consumer products (HELOCs, mortgages, Bitcoin-backed loans) to demonstrate the technology's value.

— The Genius Act legalized stablecoins for payments, and Cagney views this as the beginning of serious disruption to regional and super-regional banks as deposits migrate to DeFi lending platforms.

— Figure launched Yields, a blockchain-native interest-bearing stablecoin structured as a security, offering approximately 4% yield and enabling peer-to-peer transfers without intermediaries.

— Regulatory environment shifted dramatically from enforcement-heavy to innovation-friendly, and Cagney expects the Clarity Act will codify DeFi protections and reshape capital markets infrastructure.

— Bitcoin-backed loans with liquidation protection via put options represent a new lending paradigm that preserves borrower exposure to Bitcoin upside while eliminating forced selling.

— Bitcoin collateral performs exceptionally well in lending (never resulted in losses for Figure versus property-backed loans which have losses), making it an attractive underwriting asset with pricing that reflects true risk.

— Stablecoins earning 4% yield on blockchain can outcompete traditional bank deposits, potentially triggering significant capital flight from regional banks as the Genius Act enables broader adoption and payment rail integration.

— Native digital securities issued directly on blockchain (rather than tokenized traditional securities) avoid oracle risk and double-pledging issues, enabling superior collateral perfection and lower capital requirements for lenders.