Wall Street Wants AI-Rated, On-Chain Loans, But the Data Isn’t Ready

Figure Technology Solutions has spent most of this decade building a blockchain-based infrastructure for consumer credit, positioning it as a faster, cheaper alternative to the fragmented loan systems the mortgage industry relies on. According to the company, it has originated more than US$ 18 billion in loans on its Provenance Blockchain and executed tens of billions more in blockchain-based transactions.

That footprint, paired with the firm’s recent securitization pilots, has drawn growing interest from institutional investors experimenting with tokenized real-world assets. On-chain loans can move between counterparties with fewer intermediaries and lower operational costs. Standardized loan objects promise easier risk assessment and packaging.

Meanwhile, institutional desks are beginning to eye AI-driven credit models to run on loan-level blockchain data, potentially enabling real-time loan valuation.

But the infrastructure underpinning the U.S. mortgage market was never built for this level of transparency or automation. The data problems that undermined earlier modernization efforts remain unresolved. For now, demand for AI-priced, on-chain credit appears to be growing faster than the industry’s ability to produce clean, standardized data.