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Today Figure Acquisition Corp 1 said it has signed a non-binding letter of intent to merge with a bank holding company that\u2019s a mortgage lender and warehouse lender. The Figure SPAC (market cap: $412m) is affiliated with\u00a0Figure Technologies<\/a>, the blockchain startup, and the merged SPAC intends to roll out blockchain solutions post-merger. The un-named target bank is privately held, with $3 to $5 billion in assets.<\/p>\n To complete the merger, the Figure SPAC is requesting a six-month stockholder time extension to August 23, 2023.<\/p>\n \u201cWe believe the Proposed Transaction provides a unique value creation opportunity by combining the Bank\u2019s sound balance sheet, nationwide footprint and seasoned management team with our team\u2019s deep understanding of, and experience with, the application of technology to regulated financial services businesses as well as the necessary capital to grow and execute against our shared vision of the future of banking,\u201d said Michael Cagney, Chairman of the Board of Directors of the Company.<\/p>\n While the acquirer is the Figure SPAC, the affiliated Figure Technologies has long coveted a banking license,\u00a0applying for one in 2020<\/a>\u00a0when crypto-friendly Brian Brooks was acting Comptroller of the Currency. However, there was significant\u00a0pushback from the American Bankers Association<\/a>, and Brooks departed the OCC in early 2021.<\/p>\n Figure Technologies<\/a>\u00a0launched the\u00a0Provenance Blockchain<\/a>\u00a0in 2018 as a separate entity that hosts transactions ranging from mortgages to payments, funds and asset-backed securities. It has a native token, Hash.<\/p>\n In August last year, Figure\u00a0merged with Homebridge<\/a>, a mortgage lender that originated $25 billion in loans in 2020.\u00a0<\/p>\n Shortly afterward, the New York Community Bank\u00a0(NYCB) invested<\/a>\u00a0in Figure and together with community bank alliance JAM FINTOP they are co-founders of the\u00a0USDF Consortium<\/a>. USDF aims to use blockchain tokens or deposit-linked stablecoins for interbank payments.<\/p>\n However, NYCB\u2019s recent experience with the OCC could be relevant to the Figure SPAC merger when it attempts to get OCC approval. NYCB is in the process of merging with Flagstar Bank to become Flagstar Bank NA, and the OCC has imposed requirements on the merger. These give the OCC the right to force NYCB\/Flagstar to divest its interest in the USDF Consortium and prevent NYCB\/Flagstar from expanding its crypto-related activities.\u00a0<\/p>\nFigure has wanted a banking license for years<\/h4>\n
What will the OCC regulator think?<\/h4>\n