Stablecoin Boom: Figure IPO Grows as Canada Eyes Digital Dollar!

The global stablecoin market is entering a decisive phase, propelled by two landmark developments. In the United States, Figure Technologies has completed one of the largest crypto-linked IPOs to date, raising nearly $800 million and commanding a multibillion-dollar valuation. 

North of the border, Canada is preparing to launch a regulated digital dollar through a stablecoin initiative backed by major financial and fintech players.

Together, these milestones reveal how stablecoins once considered niche blockchain products are moving into the heart of mainstream finance, influencing capital markets, banking models, and central bank monetary strategies.

Figure Technologies: A Blockchain Firm Goes Public

A Blockbuster IPO

Figure Technologies, a San Francisco-based firm specializing in blockchain-powered lending and financial services, dramatically increased the size and price range of its IPO amid investor enthusiasm. The company raised $787.5 million, valuing it at $5.29 billion, by selling 31.5 million shares at $25 each.

This strong performance reflects not just confidence in Figure’s business model but also rising retail and institutional demand for exposure to crypto-related equities. As Bitcoin ETFs gain traction and blockchain infrastructure firms gain credibility, companies like Figure benefit from a wave of inflows chasing digital finance opportunities.

Disrupting Traditional Lending

Figure is best known for its ability to cut home equity loan processing times from the industry average of 42 days to just 10, using blockchain for instant verification and settlement. This efficiency makes it a fintech disruptor with tangible real-world applications, exactly the type of company that appeals to investors looking for sustainable growth beyond pure speculation.

Nasdaq Listing Under “FIGR”

The Nasdaq listing under the ticker FIGR also carries symbolic weight. It highlights the normalization of blockchain firms in capital markets, where regulators and investors alike are increasingly open to companies whose business models revolve around crypto rails. 

For Figure, this IPO is not just a capital raise, it is a signal that crypto-native companies can compete on Wall Street’s biggest stage.

Read Also: USDH: Hyperliquid’s Stablecoin to Rival USDC and USDT

Canada’s Digital Dollar Initiative: Tetra Digital Steps Forward

A $10 Million Backed Stablecoin Project

While the U.S. sees blockchain firms tapping equity markets, Canada is charting its own course by advancing digital currency adoption. 

Tetra Digital, based in Calgary, has raised $10 million to develop a Canadian dollar-pegged stablecoin, with support from major backers including Shopify, Wealthsimple, and National Bank.

Planned for a 2026 launch, the token aims to function as a regulatory-compliant, fee-free, and globally redeemable digital dollar, designed to integrate seamlessly with Canada’s financial ecosystem.

Why It Matters for Canada

The push positions Canada in the global CBDC and stablecoin race, joining peers such as the United States with the GENIUS Act, China with its digital yuan, and the European Union with digital euro pilots. For Canadians, this could mean:

• Faster and cheaper cross-border payments.

• E-commerce support without currency volatility.

• Instant settlement using blockchain verification, bypassing traditional bank delays.

At the same time, policymakers are balancing the benefits of innovation against the risks of fraud, oversight gaps, and systemic stability. 

The involvement of regulated institutions suggests that Canada’s approach could serve as a blueprint for advanced economies seeking to bridge private stablecoins with sovereign currency frameworks.

Read Also: Fireblocks Debuts New Stablecoin Payments Network to Boost Efficiency

Stablecoins’ Growing Impact on Traditional Banking

Shifting Roles in Payments

Stablecoins fundamentally bypass intermediaries, enabling direct peer-to-peer transactions. This threatens to reduce banks’ traditional dominance over payment systems, remittances, and international transfers.

For instance, cross-border remittances, a sector plagued by high fees, could become near-instant and low-cost through CAD or USD-backed stablecoins, challenging banks and money transfer companies.

Pressure on Deposits and Funding Models

As individuals and enterprises increasingly hold stablecoins for transactions, demand for bank deposits could fall. Since deposits are the backbone of banks’ lending and credit creation, this shift may force institutions to rethink how they source funds.

Security and Transparency Advantages

Unlike centralized databases vulnerable to breaches, blockchains enable real-time monitoring of transactions, making fraud harder to conceal. This transparency is both a competitive advantage and a regulatory necessity as stablecoin adoption scales.

A Tool for Inclusion

Stablecoins could also promote financial inclusion by giving underbanked populations access to digital payments without requiring a traditional bank account. For Canada, where rural and Indigenous communities often face banking access issues, this could be a significant benefit.

Read Also: Stablecoin Volume Hits $2.5T as Supply Peaks, But Fragmentation Remains

The Regulatory Maze Ahead

Key Challenges for Policymakers

1. Legal uncertainty: Stablecoins often blur the line between payments, securities, and commodities.

2. Reserve management: Maintaining fully backed reserves is essential to preserve trust in a 1:1 peg.

3. AML/KYC compliance: Preventing illicit use while preserving accessibility is a delicate balance.

4. Consumer protection: Users must be aware that stablecoins differ from insured bank deposits.

5. Cross-border interoperability: Differing national rules complicate global use cases.

Lessons from Past Failures

Events like the TerraUSD collapse demonstrated how fragile stablecoins can be without adequate reserves or oversight. Regulators are determined to avoid similar crises by insisting on transparency, audits, and high-quality asset backing.

Striking the Right Balance

If regulators succeed, they could foster innovation while protecting financial stability. Canada’s Tetra Digital experiment may demonstrate how regulated stablecoins can coexist with banking systems, offering both efficiency gains and systemic safeguards.

Read Also: Ripple Stablecoin RLUSD Hits $700M as Expansion Moves Into Africa

Global Significance: Two Parallel Milestones

The Figure IPO and Canada’s digital dollar push are different in execution but united in impact. One represents capital market validation for blockchain-native firms, while the other signals national-level innovation in sovereign payments infrastructure.

Together, they highlight a clear trend: stablecoins are evolving into pillars of the modern financial system, influencing investment flows, banking operations, and regulatory agendas.

The next few years will determine whether they remain a complement to traditional finance or emerge as a new standard for money movement and value storage.

FAQs

What is Figure Technologies?

Figure is a U.S.-based blockchain firm offering lending, trading, and investing services. It raised $787.5 million in its IPO, valued at $5.29 billion.

Why is Figure’s IPO significant?

It marks one of the largest blockchain-linked IPOs, showing rising investor appetite for crypto-related firms on mainstream exchanges.

What is Tetra Digital’s Canadian stablecoin?

A regulated CAD-backed token planned for 2026, supported by Shopify, Wealthsimple, and National Bank, enabling fee-free global transactions.

How do stablecoins impact traditional banks?

They reduce reliance on bank deposits, pressure payment services, and enhance transparency, potentially reshaping banks’ core business models.

What challenges do stablecoins face?

Key hurdles include regulatory uncertainty, reserve transparency, AML/KYC compliance, and ensuring consumer protection.

Bitrue Official Website:

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.