Digital Fund Services FAQs

Read FAQs about Digital Fund Services. If you don't see the answer to your question below, please email investorreporting@provenance.io  Opens a new window..

Figure’s Digital Fund Services (“DFS”) offering is the first end-to-end blockchain solution that combines a primary marketplace for attracting new investors, tools for digital fundraising and ongoing fund management and a secondary marketplace for trading fund interests. DFS leverages the Provenance blockchain to automate largely manual, paper-based processes, freeing up time and resources for fund managers to focus on what they do best: invest.

Key Benefits for Fund Managers and their Investors:

  • Democratize access and enhance the GP and LP experience
  • Streamline KYC/AML/BSA, accreditation, subscriptions and redemptions
  • Digitally manage a fundraise, track regulatory compliance, and manage capital calls and distributions
  • A liquid marketplace for fully digital secondary trading of fund interests with T+0 settlement, no counterparty risk, and dramatically lower transaction costs.

Figure Technologies, Inc. built and deployed the Provenance blockchain. Provenance is a decentralized, proof of stake blockchain for the global financial services industry.

The Provenance Marketplace is a venue for the discovery, issuance, purchase, transfer and redemption of digital fund interests. Fund managers leverage Marketplace and investor passport to seamlessly offer 506(c) and 506(b) funds to a rapidly growing number of accredited investors. In the future, the Provenance Marketplace will facilitate secondary trading of private fund interests, transforming the management of and pool of eligible investors for alternative and illiquid strategies.

Provenance is a blockchain protocol built for the financial services industry. By combining the immutable, distributed and trustless features of a blockchain with ledger, registry and exchange functionality, Provenance can increase efficiency, improve user experience, eliminate risks and create new markets. DFS applications built on and integrated with Provenance unlock the full potential of blockchain for funds. The key features and benefits of Figure DFS powered by Provenance for funds are:

PASSPORT Securely and confidentially verifies investor accreditation and performs KYC/AML/BSA checks on global individuals and entities. Investors can leverage their passport for multiple offerings on Provenance eliminating redundant processes.

MARKETPLACE Enables the discovery, issuance, purchase, transfer and redemption of digital fund interests by marrying investor passport data, fund compliance and regulatory guidelines.

LEDGER Captures all investor-level fund activity (cash flows, ownership) in an undisputed chain of truth. Provides seamless subscription and capital operations and settlement. Enables the frictionless distribution of fund proceeds and redemptions.

REGISTRY Creates a secure and immutable record of investment ownership, terms and fund details, simplifying document management for LPs and GPs.

LIQUIDITY Improves the liquidity profile of illiquid funds through bilateral secondary trading of fund interests with real time settlement while eliminating high search and transaction costs of current secondary markets.

Contact a DFS representative at dfs@figure.com  Opens a new window. to learn more about listing your fund on the Provenance Marketplace.

DFS is a Figure application that leverages the Provenance blockchain platform for fund interest tokenization, investor onboarding and compliance, digital transfer agent services, on-going fund management and soon, secondary market trading of fund interests.

Please contact dfs@figure.com  Opens a new window. for more information.

DFS currently supports funds offered to accredited investors under 506(b) and 506(c) of Regulation D.

Yes. Via DFS, fund managers can permission third parties like accountants, fund administrators, etc. to view and access relevant data and records.

Figure launched DFS in September of 2020. Friends and Family Capital was the inaugural partner for the launch. Today, Figure Asset Management and other third party funds are using DFS. Please visit www.provenance.io  Opens a new window. to become a member and access the Marketplace.