Figure executive pushes for US Treasury adoption of tokenized bonds

Cagney highlighted Bank Negara Malaysia’s recent launch of its Scripless Securities Depository System (SSDS+) as a definitive model for the future of capital markets. Unlike existing U.S. methods that often rely on wrapped assets, the Malaysian system creates securities that are native on-chain, effectively separating tokenized ownership records from payment processing handled by the central bank's RENTAS+ system. Figure executives contend this architecture provides a blueprint for Washington to modernize its own debt management.

While the U.S. market has seen progress, current efforts differ significantly from Cagney’s vision. The Depository Trust & Clearing Corporation (DTCC) has successfully processed live tokenized Treasury repo transactions, yet these involve tokens representing assets already held in traditional custody rather than native issuance. Meanwhile, the Federal Reserve continues to explore programmable monetary operations through research initiatives like Project Pine, though officials maintain these remain experimental and do not indicate an impending shift in national policy.

Figure is actively positioning itself to capitalize on this shift toward native on-chain assets. The company recently launched its On-Chain Public Equity Network (OPEN) on the Provenance blockchain, designed to register shares directly on a distributed ledger. By advocating for a similar transition at the federal level, Figure seeks to move beyond the current landscape of simulated tests and limited production trades toward a fully integrated blockchain-based sovereign debt market.