Why Tokenization Is the Real Crypto Opportunity Everyone Is Missing w/ Michael Tannenbaum

Watch on YouTube ↗  |  January 05, 2026 at 19:45  |  34:23  |  Milk Road Daily
Speakers
Michael Tannenbaum — CEO, Figure Technology Solutions

Summary

Michael Tannenbaum, CEO of Figure Markets, discusses why crypto infrastructure and tokenization may matter more than price action in 2026. He explains how Figure uses blockchain to standardize mortgage origination, operate a short-term RWA lending marketplace, and issue an SEC-registered yield-bearing stablecoin. The conversation also covers IPO and bank-charter trends, AI vendor consolidation, and Figure's public-market positioning.

  • Tokenization is framed as a major 2026 theme, distinct from crypto price speculation.
  • Figure's mortgage ecosystem uses blockchain to standardize loans, cut origination time and cost, and drive marketplace growth.
  • Figure's Democratized Prime offers hourly lending against short-term RWA; YLDS is an SEC-registered stablecoin yielding SOFR minus 35 basis points.
  • Michael expects crypto and blockchain IPOs may benefit from regulatory tailwinds even if broader IPO recovery disappoints.
  • He cautions that bank and trust charters impose permanent regulatory scrutiny and rigid three-year plans.
  • AI experimentation is expected to narrow toward embedded vendors as pricing pressure rises.
  • Figure is presented as a public company building blockchain capital markets with multiple product lines.
Ideas
Michael Tannenbaum CEO, Figure Technology Solutions 3:47
Tokenization infrastructure outperforms crypto price speculation.
In 2026, crypto infrastructure and tokenization will be a major theme, and anything attached to it should perform well. The market is too focused on crypto prices; tokenization improves capital markets through transaction efficiencies, standardization and homogeneity that create liquidity, and lien perfection and ownership verification that enable lending and cross-collateralization. Figure is a leader in tokenization within private credit, stablecoins, and crypto infrastructure that touches the real world.
Tokenization Crypto Infrastructure STABLECOINS HIGH
Michael Tannenbaum CEO, Figure Technology Solutions 3:47
Tokenization infrastructure outperforms crypto price speculation.
The US housing market has about $35 trillion of home equity and a lock-in effect from higher mortgage rates and rapid price appreciation. Figure's home equity product, offered through 250+ partners like Guaranteed Rate, CrossCountry Mortgage, regional banks, and credit unions, lets homeowners access equity quickly and cheaply by hashing mortgage attributes and lien ownership on blockchain upfront. This reduces due diligence when loans trade, lowers mortgage cost, cuts origination time to about 5 days versus 45 and cost to about $1,000 versus $12,000, and has driven 75% CAGR in Figure's marketplace. Standardization and homogeneity create liquidity and benefit both homeowners and asset owners.
RWA HIGH
Michael Tannenbaum CEO, Figure Technology Solutions 3:58
Figure leads blockchain capital markets growth.
Figure is building the future of capital markets on blockchain, starting with standardized mortgage loans originated on-chain upfront, and is the market leader in tokenization within private credit. It has three focuses: the mortgage ecosystem as its biggest business, Democratized Prime as its fastest-growing hourly RWA lending marketplace, and YLDS as an SEC-registered stablecoin. It has 250+ origination partners, 75% CAGR in its marketplace over four to five years, originates mortgages in about 5 days versus 45 and for about $1,000 versus $12,000, and is a public company doing hundreds of millions in revenue.
FIGR HIGH
Michael Tannenbaum CEO, Figure Technology Solutions 25:40
Democratized Prime yields on short-term RWA.
Democratized Prime is Figure's second big initiative and fastest-growing product: a short-term, essentially hourly marketplace for lending against and borrowing against short-term RWA. It uses an hourly Dutch auction. Mortgage originators can borrow against loans as they aggregate them for sale, and retail or institutional stablecoin holders can stake stablecoins and lend to those assets to earn yield. This is a differentiated yield and liquidity route for stablecoin holders and RWA originators.
Democratized Prime HIGH
Michael Tannenbaum CEO, Figure Technology Solutions 26:44
YLDS yields SOFR minus 35bps.
YLDS is Figure's third product, an SEC-registered stablecoin that functions as a tokenized money market fund. It pays close to Treasury or SOFR minus 35 basis points, passes most yield to the end holder, and is used as the settlement asset for loans bought and sold in Figure's marketplace. Holders can stake YLDS in Democratized Prime to lend to asset owners and earn even higher yield.
YLDS HIGH
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This Milk Road Daily video, published January 05, 2026, features Michael Tannenbaum discussing Tokenization, Crypto Infrastructure, STABLECOINS, RWA, FIGR, Democratized Prime, YLDS. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Michael Tannenbaum  · Tickers: Tokenization, Crypto Infrastructure, STABLECOINS, RWA, FIGR, Democratized Prime, YLDS