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Here’s what we’ve got for you today:
- ✍️ The #2 software company is in crypto.
- 🎙️ The Milk Road Show: The AI Revolution Could Make Crypto Unstoppable.
- 🍪 Pssst… come work with us!
Securitize is the platform institutions trust to tokenize their assets onchain. See what nine years of regulated tokenization looks like.
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THE #2 SOFTWARE COMPANY IS A CRYPTO COMPANY 🔍
There's one number Wall Street uses to separate elite software businesses from merely good ones.
It's called the Rule of 140.
You take a company's revenue growth rate and add its profit margin. Anything above 140 is rare.
Rank the top U.S. software names by that score and Palantir sits at #1 with 154.5.
Sitting at #2, less than four points behind on VanEck’s Rule of 140, is a company most people have never heard of.
Figure Technology Solutions (FIGR), at 150.8.
And get this: Figure is a blockchain company.
It runs on the Provenance blockchain, tokenizes loans onchain, and has originated roughly $29B of home equity lending (loans taken out against the value of your house).
That makes it the largest non-bank home equity provider in the U.S.
It also issues YLDS, an SEC-registered yield-bearing stablecoin, and operates an onchain lend-borrow marketplace called Democratized Prime.
I.e. real loans and real capital markets, settled on a public blockchain.
Palantir absolutely deserves its #1 spot, to be clear.
Its revenue is up 93% year over year, adjusted operating margin at 62%, and its existing customers are spending roughly 57% more than they were a year ago.
(It’s firing on every cylinder, and the market prices it accordingly.)
With all of that, Figure - a company most people have never heard of - put up a near-identical Rule of 140 score…
THE RAILS BEHIND BLACKROCK'S ONCHAIN FUND
Assets still run on decades-old infrastructure:
Slow settlement, walled access, paperwork everywhere.
Tokenization fixes that but who’s actually doing it at an institutional scale?
With nearly nine years in the business, Securitize has become the platform institutions trust to bring assets onchain.
Here's why it stands out:
- BlackRock, Morgan Stanley & ARK Invest have all invested in Securitize
- NYSE, VanEck & BNY have chosen Securitize to tokenize their stocks.
- The only public pure-play in tokenization infrastructure
This isn't a crypto project waiting for TradFi to catch up. It's the regulated bridge that the largest asset managers in the world already build on.
See what nine years of regulated tokenization looks like.
THE #2 SOFTWARE COMPANY IS A CRYPTO COMPANY (P2) 🔍
Right now, Palantir trades around 85x forward earnings. Figure trades around 30x.
Matthew Sigel, who runs digital assets research at VanEck (the $100B+ asset manager), framed it like this:
FIGR has the same fundamentals as Palantir, at a third of the valuation.
But could that score of 150 have come from a flukey Q1?
Figure's own volume numbers say ‘nope’:
- Q2 marketplace volume: $4.26B, up 132% year over year and 47% from Q1.
- June: $1.52B, up 155% year over year.
- July: ~$1.70B, an all-time company record, tracking ~20% above Q2's pace.
And it drops through to profit. Last reported quarter, revenue nearly doubled to $167M while adjusted EBITDA hit $83M at a 50% margin.
Wall Street is starting to move too.
Bernstein just raised its target to $70, and Goldman lifted its earnings estimates this week.
The average target across analysts sits around $50, roughly 75% above where the stock trades today.
So why is it still cheap? Two things…
- Figure is funding its Kiavi acquisition with $600M of new debt.
- Insiders have sold more than 479,000 shares over the past 90 days.
Neither one breaks the thesis, but together they keep a lid on the multiple.
For context on the potential setup: FIGR currently sits ~63% below the $78 high it touched last year.
The next test is one week away. Figure reports Q2 on August 13, before the open.
Volume is already pre-announced, so the top of the report is largely known. What's still open are margins and guidance.
If you’re a Milk Road PRO member, FIGR is likely old news to you.
M0xt has been watching and buying its dips for 6 months now.
It's only a matter of time before the rest of the market sees what he and VanEck see.
Don’t miss his next entry! Try Milk Road PRO for a buck for 7 days.
BITE-SIZED COOKIES FOR THE ROAD 🍪
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Lyn Alden: Whenever gold has a massive bull run and plateaus, Bitcoin tends to go parabolic.
Technology isn't enough anymore: Ethereum Institutional says banks aren't choosing blockchains based only on TPS or fees.
Pssst… come work with us! We’re currently hiring content creators and analysts (full-time & remote). I dare you to apply.
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See what nine years of regulated tokenization looks like.
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