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Securitize is the platform institutions trust to tokenize their assets onchain. See what nine years of regulated tokenization looks like.

THE #2 SOFTWARE COMPANY IS A CRYPTO COMPANY 🔍

There's one number Wall Street uses to separate elite software businesses from merely good ones.

It's called the Rule of 140.

You take a company's revenue growth rate and add its profit margin. Anything above 140 is rare.

Rank the top U.S. software names by that score and Palantir sits at #1 with 154.5.

Sitting at #2, less than four points behind on VanEck’s Rule of 140, is a company most people have never heard of.

Figure Technology Solutions (FIGR), at 150.8.

And get this: Figure is a blockchain company.

It runs on the Provenance blockchain, tokenizes loans onchain, and has originated roughly $29B of home equity lending (loans taken out against the value of your house).

That makes it the largest non-bank home equity provider in the U.S.

It also issues YLDS, an SEC-registered yield-bearing stablecoin, and operates an onchain lend-borrow marketplace called Democratized Prime.

I.e. real loans and real capital markets, settled on a public blockchain.

Palantir absolutely deserves its #1 spot, to be clear.

Its revenue is up 93% year over year, adjusted operating margin at 62%, and its existing customers are spending roughly 57% more than they were a year ago.

(It’s firing on every cylinder, and the market prices it accordingly.)

With all of that, Figure - a company most people have never heard of - put up a near-identical Rule of 140 score…

THE #2 SOFTWARE COMPANY IS A CRYPTO COMPANY (P2) 🔍

Right now, Palantir trades around 85x forward earnings. Figure trades around 30x.

Matthew Sigel, who runs digital assets research at VanEck (the $100B+ asset manager), framed it like this: 

FIGR has the same fundamentals as Palantir, at a third of the valuation.

But could that score of 150 have come from a flukey Q1?

Figure's own volume numbers say ‘nope’:

And it drops through to profit. Last reported quarter, revenue nearly doubled to $167M while adjusted EBITDA hit $83M at a 50% margin.

Wall Street is starting to move too.

Bernstein just raised its target to $70, and Goldman lifted its earnings estimates this week.

The average target across analysts sits around $50, roughly 75% above where the stock trades today.

So why is it still cheap? Two things…

Neither one breaks the thesis, but together they keep a lid on the multiple.

For context on the potential setup: FIGR currently sits ~63% below the $78 high it touched last year.

The next test is one week away. Figure reports Q2 on August 13, before the open.

Volume is already pre-announced, so the top of the report is largely known. What's still open are margins and guidance.

If you’re a Milk Road PRO member, FIGR is likely old news to you. 

M0xt has been watching and buying its dips for 6 months now. 

It's only a matter of time before the rest of the market sees what he and VanEck see.

BITE-SIZED COOKIES FOR THE ROAD 🍪

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Lyn Alden: Whenever gold has a massive bull run and plateaus, Bitcoin tends to go parabolic.

Technology isn't enough anymore: Ethereum Institutional says banks aren't choosing blockchains based only on TPS or fees.

Pssst… come work with us! We’re currently hiring content creators and analysts (full-time & remote). I dare you to apply.

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See what nine years of regulated tokenization looks like.

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