Provenance.io Blockchain Completes $20 Million Security Token Offering

By Annie Baker ● Apr 11, 2019

Provenance.io Blockchain (PBI), the administrator for the Provenance.io blockchain, has completed a $20 million security token offering in order to support the continued development and expansion of the Provenance.io ecosystem. And the Reg D private placement included broad participation from both blockchain and traditional technology investors.

Figure Technologies — a leading fintech company founded by former SoFi CEO Mike Cagney — built Provenance.io. And Figure was an early adopter of Provenance.io — which originated, financed, and sold its HELOC loans entirely on the blockchain. And Jefferies is providing a warehouse facility for Figure loans using Provenance.io.

The token sale comes on the heels of Figure spinning out Provenance.io and its administrator PBI as independent entities. The proceeds will go towards hiring administrative and finance operations positions including compliance, technology, and business development. Figure continues to be a Hash holder and is assisting in the establishment of the PBI board and provide certain services to PBI.

Hash — which is the security token on Provenance.io — is the underlying equity of the blockchain. And Hash serves two purposes, including a means to distribute fees paid into Provenance and it also provides a governance voting structure for PBI. There are 100 billion Hash tokens and it cannot be created or destroyed.

“This is a seminal moment for the blockchain industry in financial services,” said former FDIC chairwoman Sheila Bair. “Provenance.io has the potential to bring massive improvements to the industry, across asset originators, the buy and sell side, as well as regulatory benefits and better consumer protections. In particular, it will provide loan-level transparency around the quality of securitized assets and a clear, unalterable record of ownership—two things that were sorely missing during the financial crisis.”

Provenance.io was built and deployed by Figure in 2018. And the company leverages the security, efficiencies, and cost advantage of blockchain for loan origination and sales. Plus there is a diverse set of funds, banks, and dealers active on Provenance.io today.

“Blockchain technology will disrupt financial services in ways that unlock tremendous value through improving current processes but also introducing new ways to do business,” added Franklin Templeton president and COO Jennifer Johnson — who is a founding node manager for Provenance. “We are excited to facilitate and support blockchain adoption because change will happen when the technology is embraced by the market. The technology platform combined with the ecosystem makes Provenance stand out.”