Figure Technology Solutions shares have appreciated nearly 10% over the past month, yet Bernstein argues the equity remains undervalued given the company's strategic pivot beyond its origins as a fintech lender. In a research note issued on Tuesday, the investment bank reiterated its Outperform rating with a $67 price target, signaling approximately 67% upside from current trading levels while maintaining its previous outlook. The core thesis hinges on Figure's evolution from a home equity line of credit originator into a comprehensive platform integrating blockchain infrastructure and AI-driven credit markets. A critical component of this transformation is tokenization, which involves converting loans into tradable onchain assets capable of real-time settlement. Bernstein estimates the addressable market for tokenized credit at roughly $4 trillion, positioning Figure to access a significantly larger opportunity than traditional HELOC lending alone. Data compiled by Woofun AI indicates that loan volumes reached $1.34 billion in April, representing a 108% year-over-year increase and marking the second consecutive month exceeding $1 billion. Bernstein projects this momentum will sustain, forecasting total loan volumes to climb to $16.5 billion by 2027 from $8.4 billion in 2025. The $4 trillion estimate encompasses the total annual volume of credit origination across multiple categories, including mortgages, auto loans, home equity lines, and small-business loans, all of which could eventually migrate onchain as tokenized assets. Woofun AI notes that while tokenized credit currently represents a small segment of the broader real-world asset market, the sector is valued at approximately $5.5 billion, highlighting a substantial gap between current adoption and the long-term growth trajectory outlined by Bernstein. Competitors are already experimenting with onchain credit integration; Centrifuge has expanded its decentralized finance platform to include tokenized credit and US Treasury products on new blockchain networks to connect institutional-grade assets with DeFi liquidity.

Concurrently, Figure has entered the auto loan sector through its Hastra ecosystem, designing tokenized credit products to interface with decentralized finance and broader blockchain markets. Woofun AI analysis suggests that as these platforms mature, the convergence of traditional lending volumes with blockchain settlement efficiency will likely redefine the competitive landscape for digital asset infrastructure.