Two of the financial world’s emerging companies are working in tandem to promote blockchain-powered services.

As Apollo Global Management Inc. ramps up its drive towards further innovation in the fintech scene, it recently inked an agreement with Figure Technologies to work on a number of blockchain-enabled endeavors.

The companies have agreed to work on how the Provenance blockchain can be applied to various aspects or phases of the investment life cycle. The initiatives lined up include on-chain fund listing, activities related to the digital marketplace, as well as plans for asset securitization.

As part of Apollo’s expanding focus on fintech innovation, this collaboration will involve further studies and testing on applicable new technologies, how these apply to the company’s investment platform, and how these can serve international investors in terms of financial returns and retirement funds.

This strategic partnership between the two companies is seen as a step towards the further growth and development of the global financial services industry. Figure, in particular, is a pioneer when it comes to lending and payment blockchain solutions. In March 2020, Figure initiated the first securitization on the Provenance blockchain, paving the way for other innovations for efficiency.

The logical choice

One vital reason why Apollo chose to partner with Figure is the latter’s involvement in the development of Provenance. The open-source blockchain was created specifically for the financial sector, particularly for use in various markets and asset classes.

According to John Zito, Apollo’s senior partner and deputy CIO for credit, he and his team are looking forward to working with their counterparts at Figure. 

Furthermore, he stated that they are all focused on integrating relevant technologies into the Apollo platform that will help improve the overall flow of the investment life cycle.

On their end, Figure CEO and co-founder Mike Cagney feels that the combination of Apollo’s size and expertise with his company’s blockchain apps can transform the financial services sector in the long term. He calls this agreement a “timely collaboration,” one that can leverage Apollo’s expertise as Figure is set to launch a “decentralized blockchain marketplace.”

Cagney also noted that both companies are on the lookout for potential and more innovative blockchain applications for lending, payments, securitization, as well as exchanges.

The agreement with Figure isn’t the only ace that Apollo has up its sleeve. The company also entered into a partnership with the private equity firm Motive Partners. Motive Create, the latter’s innovation team, will be working on several technological innovations for both affiliates and portfolio firms under the Apollo umbrella.

About Apollo and Figure

Apollo is a global investment management company that focuses on delivering yield, hybrid, and opportunistic business strategies for its clients. Per March 31, 2021, it has nearly $461 billion assets under management (AUM).

Meanwhile, Figure is a blockchain lending company founded by Mike Cagney in 2018. It recently raised $200 million in a May funding round (Series D), propelling the company’s valuation at $3.2 billion.