Most crypto exchanges make you choose: either you get high yields and real-world asset access, or you get regulatory safety. Figure Markets is one of the few that actually gives you both. Launched in 2024 by Mike Cagney-former CEO of SoFi-it’s not just another trading platform. It’s a regulated, blockchain-native system built on Provenance Blockchain that lets you trade, earn yield, and borrow against crypto-all without handing over control of your keys. And unlike most platforms that promise high returns but collapse under pressure, Figure Markets is already profitable. In the first half of 2025 alone, it made $191 million in revenue and $29 million in profit. That’s rare in crypto.

How Figure Markets Works: Self-Custody Without the Chaos

Figure Markets doesn’t use traditional cold wallets or third-party custodians. Instead, it uses multi-party computation (MPC) wallets. This means your private keys are split across multiple secure nodes. No single entity holds them. You control access through your device and biometrics, but the platform handles the security layer. It’s not fully decentralized like Uniswap, but it’s not fully custodial like Coinbase either. It’s a hybrid: regulatory-compliant, yet truly self-custodied.

This setup lets Figure Markets offer things no other U.S.-registered exchange can: SEC-approved yield products. The standout is YLDS, the first federally registered stablecoin that pays interest. As of July 2025, YLDS pays 3.85% APY, with interest paid weekly directly into your wallet. Compare that to USDC, which typically pays 0% or less than 1% on most platforms. If you hold $50,000 in YLDS, you earn about $1,925 a year-just for holding it.

Trading: Zero Fees, Limited Selection

Figure Markets doesn’t charge trading fees on any pair. That’s a big deal. Coinbase charges between 0.05% and 0.60% depending on your volume. Binance charges 0.1% for spot trades. Figure Markets? Nothing. Zero. Every trade, every swap, every conversion-no fee.

But here’s the trade-off: the asset selection is narrow. You won’t find 300 altcoins here. The platform focuses on major coins-BTC, ETH, USDC, USDT-and a small number of tokenized real-world assets (RWAs). Right now, those include tokenized home equity loans and auto loans. By August 2025, they added auto loans to their existing home equity offerings. It’s a smart move. These aren’t speculative tokens. They’re backed by actual loans with payment histories, credit checks, and collateral.

For traders who want to swing trade Shiba Inu or gamble on new memecoins, Figure Markets isn’t for you. But if you’re looking to move between BTC, ETH, and stablecoins without paying fees-and earn yield on top of it-this is one of the cleanest platforms available.

Yield Products: 8.5% APY? Here’s the Catch

Figure Markets advertises yield products offering up to 8.5% APY. These come from tokenized real-world assets. For example, you can invest in a pool backed by home equity loans. The platform doesn’t lend directly-it partners with lenders who originate the loans, then tokenizes them on-chain. Investors earn a share of the interest payments.

It sounds great. But there’s risk. Blockchain analyst David Gerard pointed out in September 2025 that these loans are tied to U.S. housing markets. If interest rates rise sharply or home prices drop, defaults could spike. Right now, 87% of the yield pool is backed by home equity loans. That’s a lot of concentration risk. The platform discloses this, but many users overlook it.

Still, the yields are real. Users on Reddit report earning $1,242 in six months on a $32,000 deposit. That’s consistent. No platform-wide collapse. No frozen withdrawals. The loans are being paid. The interest is flowing. That’s more than you can say for Celsius or BlockFi in 2022.

Crypto-Backed Loans: Borrow Without Selling

One of the most powerful features is crypto-backed loans. You can borrow up to 75% of your BTC or ETH value at a fixed rate. No credit check. No income verification. Just lock your crypto, get USD in your bank, and keep holding your position.

One user on Reddit borrowed $50,000 against 1 BTC during the July 2025 price dip. He used the cash to buy more BTC at a lower price, then held both. His position grew without ever selling. That’s leverage without the liquidation risk of margin trading.

Loan-to-value ratios are either 50% or 75%. If your collateral drops below the threshold, you get a margin call. But unlike centralized lenders that auto-sell, Figure Markets gives you 72 hours to add more collateral or repay. It’s designed to be fair, not predatory.

Funding and Withdrawals: Fast for Americans, Limited for Others

U.S. users have it easy. Link your bank account, and you can deposit up to $25,000 via ACH with instant availability. Withdrawals are equally fast. International users? Not so much. Right now, they can only deposit USDC via Ethereum. No SEPA, no SWIFT, no direct bank wires. That’s a major limitation for Europeans, Australians, or Asians.

But Figure Markets says SEPA and SWIFT support is coming in Q1 2026. That’s a solid roadmap. Until then, non-U.S. users need to buy USDC on another exchange, send it to their Figure Markets Ethereum deposit address, and wait for confirmation. It’s doable, but not seamless.

Security and Compliance: The Real Advantage

Figure Markets is registered as a money services business with FinCEN and complies with all U.S. KYC/AML rules. It’s also the only crypto platform with an SEC-registered yield product. That’s huge. Most DeFi apps ignore regulation. Figure Markets leans into it.

CertiK, a top blockchain security firm, audited their MPC wallet system in August 2025 and called it “enterprise-grade security while maintaining user control.” That’s a rare endorsement. The platform has never been hacked. No exploits. No leaked keys. No frozen funds.

Compare that to Binance, which faced regulatory crackdowns globally, or Kraken, which paid $30 million to settle SEC charges. Figure Markets isn’t perfect-but it’s playing by the rules, and that’s why institutional investors are starting to use it. In Q2 2025, $1 billion in loans came through Figure Connect, its partner network for banks and lenders.

User Experience: Smooth, But Slow to Onboard

The app is clean. The web interface is intuitive. Video tutorials explain MPC wallets and yield pools in under five minutes. Users rate the documentation 4.2/5 on Capterra.

But the onboarding? It’s slow. KYC verification takes an average of 3.2 business days, according to Trustpilot reviews. Coinbase does it in 1.5 days. That’s frustrating if you’re trying to move fast during a market move.

Customer support response time is 18.5 hours on average-almost double the industry standard of 9.2 hours. Some users report waiting over 48 hours for simple questions. It’s a known issue. The company admits it in its transparency reports. They’re hiring more staff, but scaling support is hard when you’re dealing with regulated financial products.

Who Is This For? Who Should Skip It?

Use Figure Markets if:

• You’re a U.S. resident and want to earn yield on stablecoins without risking your principal
• You hold BTC or ETH and want to borrow against it without selling
• You care about regulation and want to avoid shady DeFi protocols
• You’re tired of paying trading fees on every swap
• You believe in tokenized real-world assets as the future of finance

Avoid Figure Markets if:

• You trade altcoins or memecoins regularly
• You’re outside the U.S. and don’t want to use USDC transfers
• You need 24/7 live chat support
• You want to trade futures, options, or leverage beyond 3x

The Bottom Line: A Profitable, Regulated Alternative

Figure Markets isn’t trying to be the biggest crypto exchange. It’s trying to be the most responsible one. It’s profitable. It’s compliant. It’s building real financial infrastructure, not just speculation.

Yes, the asset list is small. Yes, support is slow. Yes, international access is limited. But if you’re serious about crypto as a long-term asset class-and not just a gambling tool-this is one of the few platforms that actually aligns with that goal.

The future of finance isn’t just decentralized. It’s regulated, transparent, and backed by real value. Figure Markets is betting on that future. And right now, it’s winning.