Cross River Bank, a Fort Lee -based fintech infrastructure provider specializing in embedded financial solutions, announced a major forward-flow agreement on Thursday with Figure Technology Solutions.
Under the terms of the deal, Cross River’s Principal Finance Group (PFG) has committed up to $250 million in capital to purchase assets stemming from Figure’s rapidly growing Crypto-Backed Loans product line.
The deal injects a massive wave of predictable, institutional liquidity into Figure’s blockchain-native capital marketplace. The dedicated capital allows everyday crypto investors to quickly unlock cash value from their digital tokens without triggering mandatory asset liquidations or taxable capital gains events.
“For many consumers who own digital assets, crypto-backed lending provides a lower cost financing option versus the alternatives,” Noah Cooper, Cross River’s Chief investment officer and head of the Capital Solutions Group said. “We are thrilled to support Figure as this financing tool continues to mature.”
Figure’s crypto-backed lending framework operates similarly to a traditional home equity or securities-backed line of credit. Borrowers pledge their digital currencies as collateral to secure a cash loan denominated in U.S. Dollars (USD).
Because the borrowers technically retain full ownership of their underlying digital assets throughout the duration of the loan, they remain positioned to benefit from any market appreciation while bypassing the immediate tax penalties associated with selling cryptocurrency.
Leveraging a proprietary, real-time digital banking core, Cross River functions as an essential, FDIC-insured backend partner to the world’s largest fintech and consumer tech companies.
The multi-million-dollar deal highlights a growing institutional appetite for structured debt backed by web3 assets, signaling that major financial firms view crypto-collateralized consumer loans as an increasingly reliable, predictable asset class.
“Our forward-flow commitment with Figure provides the dedicated capital to serve broad consumer demand,” Rahul Jha, Cross River’s head of principal finance said. “This structure reflects our confidence in both the asset class and Figure’s platform.”
The financial arrangement marks another milestone for Figure, which has moved aggressively to standardize blockchain-native debt origination, funding, and secondary market trading.
“With Crypto-Backed Loans, we’ve gone from a relatively new idea — to allow borrowing against a highly popular appreciated asset — and we’ve achieved rapid adoption while creating a model that others have followed,” Todd Stevens, chief capital officer of Figure said. “Cross River’s involvement is a major proof point underscoring our success so far, as well as our continued upward trajectory.”
