Benzinga | Aug 16, 2021 09:11AM EDT

New York Community Bancorp, Inc. And Figure Technologies, Inc. Enter Into Strategic Relationship

New York Community Bancorp, Inc. (NYSE:NYCB) (the "Company") and Figure Technologies, Inc. ("Figure") today announced that they have entered into a strategic relationship to collaborate on a series of blockchain initiatives. The relationship envisions that both NYCB and Figure will allocate their respective resources into blockchain projects utilizing the Provenance Blockchain. NYCB's current strategic priorities include leveraging the blockchain to support financial inclusion in banking and credit, reducing the cost and complexity within the mortgage business, and supporting a faster and less expensive payments system. Implementation of these initiatives by NYCB will be in accordance with current relevant regulatory guidance. As part of this relationship, New York Community will make a direct equity investment in Figure.

Commenting on the strategic partnership, New York Community Chairman, President, and Chief Executive Officer Thomas R. Cangemi stated: "We are very excited to work with Figure on a number of initiatives using the Provenance Blockchain that are purpose-built for the highly regulated financial services industry. We chose Figure because of its focus on and knowledge of banking and payment systems. Our agreement with Figure is a part of NYCB's strategic focus on the operational and cost benefits that blockchain technology can bring to bear across many areas of banking. NYCB recently stood up a Provenance node and, with Figure's assistance, is building the necessary infrastructure to leverage numerous bank-relevant capabilities. We look forward to working closely with Mike Cagney and his team at Figure in developing capabilities benefiting both companies."

Figure, led by Co-Founder and FinTech industry pioneer Mike Cagney, helped develop Provenance, an open source blockchain technology, specifically designed for the financial services industry and used across multiple asset classes and markets. Figure has developed multiple blockchain-based solutions in lending and payments, including the first loan securitization on Provenance Blockchain in March 2020. "Figure's blockchain applications built on Provenance have the potential to significantly transform the financial services industry. We're pursuing innovative blockchain solutions in fields such as payments, lending and exchanges," said Mike Cagney, Chief Executive Officer of Figure. "Last month we announced a strategic agreement with Apollo Global Management, Inc. and now we are pleased to work with New York Community as an early adopter of Provenance. We see banks as an essential part of the Provenance ecosystem and we expect to announce several initiatives which will benefit Figure, Provenance and NYCB stakeholders."

NYCB and Figure also announced that they will invest in the JAM FINTOP Blockchain fund, which will invest in and develop blockchain infrastructure and businesses. Figure's team will also serve as advisors to the fund, including Mike Cagney leading JAM FINTOP's Blockchain Committee and June Ou, Figure's Chief Operating Officer, serving as Technical Advisor.