Synergy One is now utilizing Figure's Democratized Prime platform to earn returns on corporate Treasury notes by lending against HELOCs. This strategy provides competitive funding for its mortgage operations and drastically increases returns from around 3-4% on Treasury notes to approximately 9%. Michael Tannenbaum, CEO of Figure, highlighted the platform’s goal of disrupting traditional warehouse lending by fostering a more efficient, decentralized marketplace. This change allows for a simplified process where asset evaluation holds greater importance than evaluating counterparty risk. Synergy One's collaboration marks a significant shift in their funding approach, leveraging existing relationships for success.
Synergy One is earning returns on corporate Treasury notes by lending against HELOCs originated using Figure's technology, marking the first live institutional use of Democratized Prime.
By using Democratized Prime, Synergy One secures competitive funding for its mortgage business while earning about 9% returns on idle Treasury cash, compared to typical 3% to 4%.
Michael Tannenbaum mentioned that Democratized Prime aims to disrupt traditional warehouse lending through a decentralized marketplace that prioritizes asset evaluation rather than focusing solely on counterparties.
Tannenbaum explained that with Democratized Prime, lending in the overnight funding market allows for a lower threshold, taking barriers out and simplifying processes.
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