Miami Beach, FL — Tokenization is not replacing the system overnight, but it is steadily reshaping the plumbing underneath, Wall Street executives said at Consensus 2026 in Miami.

Digital asset leaders from Citi, JPMorgan and DTCC said during a panel discussion that blockchain-based rails are moving into production, with real volumes and real clients shaping how the technology is deployed.

A year ago, Citi’s tokenized deposit system was handling millions. “Now we’re moving billions,” said Ryan Rugg, who leads digital assets for the bank’s treasury and trade solutions unit.

The demand, she said, is coming from clients who want to move money around the clock, not just during banking hours.

JPMorgan is seeing a similar pattern. Its blockchain platform, Kinexys, has processed more than $1 trillion in transactions, said Kara Kennedy, who leads market development for the bank’s digital assets unit.

The focus is less on building parallel systems and more on stitching blockchain rails into existing infrastructure to enable faster settlement and continuous operations, she said.

DTCC, which sits at the center of U.S. market plumbing, is taking a longer view. The firm is working to bring parts of its $150 trillion securities infrastructure onto a shared digital layer, with initial rollout plans already underway.

“You can’t just replace what exists,” said Nadine Chakar, who heads digital assets at DTCC. “This is an evolution.”

That approach reflects a broader shift in the market. Early tokenization efforts often looked for problems to solve. Now, firms are targeting specific pain points, especially in areas such as collateral, cross-border payments, and liquidity management.

For large corporations, the ability to move funds in real time — across time zones and holidays — is changing how treasury functions operate. Instead of pre-positioning cash days in advance, firms can react instantly to margin calls or investment opportunities.

Still, the panelists pushed back on the idea that blockchain will remove intermediaries altogether. Core functions like risk management, compliance and settlement guarantees remain hard to replicate in fully decentralized systems.

“We will always need some level of intermediation,” Chakar said.

Crypto-native players, however, see a longer arc. Evan Auyang, president at Animoca Brands, said the industry is still in a transition phase, with blockchain gradually proving its efficiency before a bigger structural change.

“The nature of blockchain is that it’s transformative,” Auyang said, pointing to faster processes like loan approvals that can shrink from weeks to days. But he added that fully native onchain markets are “not ready yet,” given the scale of existing systems and regulatory constraints.

At the same time, he argued, the direction is hard to ignore. “If there’s efficiency and cost savings, it will be adopted,” he said, adding that traditional finance and decentralized systems are now “converging.”

Drift Protocol announced Tuesday the implementation of a recovery plan for users affected by a $295 million exploit on April 1, which it attributed to the North Korea state-backed DPRK hacking group identified by forensic firm Mandiant.

The attack led the protocol to suspend trading and borrowing immediately after the exploit. Drift said “the majority of stolen assets remain traceable and contained with limited successful off-ramping by the attacker,” with about 130,259 ETH (roughly $31 million) concentrated across four monitored wallets.

Drift’s statement explains that the recovery framework centers on issuing a token representing verified user losses. “Each recovery token represents $1 of verified loss,” Drift said, adding that holders would be able to redeem based on the value of a recovery pool funded over time.

That pool starts with roughly $3.8 million in remaining protocol assets and is expected to grow through exchange revenue, up to $127.5 million in support from Tether tied to performance, and up to $20 million from partners, Drift said. The pool will accrue until it matches total losses of about $295.4 million, at which point tokens can be redeemed at full value, it added.

Drift also said some funds have already been frozen, including about $3.36 million in USDC, while additional assets remain delayed in cross-chain transfers. Legal efforts to seize and reissue funds are ongoing, it said. The protocol also launched a public bounty offering 10% of recovered assets.

Drift plans to relaunch in the second quarter as a “security-first” exchange with changes including new multisig controls, time-locked operations, key rotation and reduced product scope focused on perpetuals trading.

“The Drift team is taking considered measures to ensure that users are made whole,” the team said, adding that final decisions will be subject to governance votes.

Drift’s recovery plan announcement comes a week after Aave said it was spearheading a coordinated DeFi recovery effort to rescue Kelp DAO, the second largest DeFi exploit this year, which was also carried out by North Korean-backed hackers. The so-called Lazarus group drained nearly $280 million. In this case, Aave has been able to garner span donations, deposits, and credit lines from across the crypto space.

Figure Technology Solutions is advancing its strategic pivot from being a pure home equity line of credit (HELOC) originator to a broader platform that integrates blockchain infrastructure and AI-powered credit markets. Bernstein Securities reaffirmed an Outperform rating on Figure (FIGR) with a $67 price target, implying roughly 67% upside from current levels and signaling confidence in the company’s transition beyond traditional lending.

In the brokerage note published Tuesday, Bernstein highlighted a momentum shift under way, underscored by April loan volumes totaling $1.34 billion—up 108% year over year and marking the second consecutive month above $1 billion. The firm argues that tokenization—converting loans into on-chain, tradable assets that can settle in real time—could unlock a much larger addressable market than standard HELOC lending, aligning Figure with broader trends in tokenized credit and real-world assets.

Key takeaways

• Bernstein reiterates an Outperform rating on FIGR with a $67 target, signaling potential upside of about two-thirds from current levels.
• The research argues that Figure’s shift toward tokenized credit and AI-driven markets could access a much larger market than its legacy HELOC business.
• April loan volumes reached $1.34 billion, up 108% year over year, the second straight month above $1 billion, with growth expected to continue.
• Bernstein projects total loan volumes could climb to $16.5 billion by 2027 from $8.4 billion in 2025, reflecting a multi-year growth trajectory.
• Tokenized credit remains a small slice of the real-world asset (RWA) market today, but several players are building toward broader adoption, including Figure’s Hastra ecosystem and peers like Centrifuge.

Figure’s pivot: from HELOC originator to a tokenized credit and DeFi-enabled platform

The note frames Figure’s evolution as a deliberate expansion beyond traditional HELOC lending into a platform designed to support a broader spectrum of credit markets. Central to this shift is the tokenization of loans—turning consumer and business debts into on-chain instruments that can be traded and settled in real time. Bernstein views tokenized credit as a way to unlock liquidity, improve risk transfer, and accelerate settlement cycles for lenders and investors alike.

Figure’s Hastra ecosystem embodies this broader vision, integrating tokenized credit products—such as auto loans—into decentralized finance (DeFi) and related capital markets. By embedding tokenized credit inside a blockchain-enabled framework, Figure aims to connect traditional lending with on-chain liquidity, potentially boosting fund flows and diversification for both retail and institutional participants.

Tokenized credit: a nascent, multi-trillion opportunity amid early adoption

Bernstein’s analysis points to a sizable addressable market for tokenized credit, estimated at around $4 trillion in annual origination across multiple loan categories, including mortgages, auto loans, HELOCs, and small-business lending. That figure underscores a long runway for platforms like Figure to broaden activity beyond the company’s core HELOC heritage.

In parallel, the broader real-world asset (RWA) space remains relatively small today. Industry data cited by Bernstein puts the tokenized credit market at about $5.5 billion, highlighting the gap between current adoption and the longer-term growth trajectory forecast by the firm. The potential, however, is clear: as more asset classes are tokenized and brought onto-chain, Figure could play a significant role in linking traditional credit with DeFi liquidity channels.

The broader ecosystem has begun to test these connections. For instance, Centrifuge has expanded its DeFi platform to include tokenized credit and U.S. Treasury products on new blockchain networks, signaling a broader industry push toward institutional-grade assets within DeFi. Such developments provide a proof point that the tokenized-credit thesis—while still in early days—has a credible pathway to scale.

Within Figure’s strategy, the Hastra program is cited as a concrete avenue for expanding tokenized credit products, particularly auto loans, into on-chain markets. This direction aligns with a growing trend of using tokenized consumer and commercial debt to improve liquidity and risk sharing across decentralized platforms.

What this means for investors and builders in crypto finance

The trajectory outlined by Bernstein suggests that investors should watch two key dimensions: the pace of loan-portfolio growth and the rate at which tokenized credit assets gain on-chain liquidity and price discovery. If the April momentum—$1.34 billion in loan originations, up 108% YoY—continues and scales toward Bernstein’s 2027 target, Figure could demonstrate tangible progress from a traditional lender toward a versatile credit-platform model.

Beyond Figure, the broader tokenized-credit story remains a work in progress. The current market size indicates substantial headroom if on-chain settlement, liquidity, and compliance frameworks mature. Observers will be watching how regulatory developments, custody solutions, and institutional participation influence the speed and breadth of adoption in tokenized credit markets.

For builders, the example set by Centrifuge and Figure’s Hastra initiative highlights a path for tokenized credit products to bridge real-world assets with DeFi ecosystems. The ongoing experimentation across mortgages, auto loans, and other indebtedness points to a future where on-chain credit could become a standard liquidity layer for non-traditional borrowers and asset classes.

As Figure navigates this transition, investors will need to monitor not only headline loan volumes but also the quality of onboarding, risk controls, and the ability to convert on-chain liquidity into meaningful, tradable instruments. The open question remains how quickly tokenized credit will reach mainstream liquidity, how regulators will respond to expanded on-chain securitization, and whether the current growth trajectory can withstand macro headwinds.

In the near term, the key data point to watch is loan origination velocity and the trajectory of Hastra-enabled products. If the pace of originations sustains its current speed and tokenized offerings gain broader market acceptance, Figure could move closer to Bernstein’s optimistic outlook. However, given the nascent stage of tokenized credit, investors should balance potential upside with the uncertainties inherent in early-stage on-chain asset markets.

Readers should keep an eye on further disclosures from Figure and its partners as the company scales tokenized credit offerings, alongside independent assessments of market adoption and risk management frameworks in tokenized lending.

Figure Technology Solutions remains at a crossroads of traditional lending and on-chain finance, a junction where near-term momentum and long-term strategic clarity will determine whether tokenized credit becomes a core driver of value for Figure and its ecosystem.

Key Takeaways

• Q1 2026 revenue reached $1.63B, surging 85% annually and exceeding analyst projections
• Adjusted earnings per share landed at $0.33; annual guidance upgraded to $7.65–$7.66B range
• Government segment delivered $687M, surpassing forecasts; U.S. commercial segment at $595M fell short
• Shares declined approximately 7%, hovering around $136, marking a 23% year-to-date retreat
• Extreme valuation metrics persist with 232x trailing P/E and 78x price-to-sales multiple

Shares of Palantir (PLTR) tumbled roughly 7% Tuesday following the company’s otherwise impressive Q1 2026 financial results, as Wall Street zeroed in on underwhelming commercial segment performance and eye-watering valuation metrics.

Palantir Technologies Inc., PLTR

The data analytics giant traded around $136 during midday sessions, slipping beneath both its 50-day moving average of $145.40 and its 200-day moving average of $164.26. Year-to-date losses now stand at 23%, representing a significant pullback from the 52-week peak of $207.52.

First-quarter revenue totaled $1.63 billion, reflecting an 85% year-over-year expansion that exceeded Wall Street’s consensus. Adjusted earnings per share registered at $0.33. The company simultaneously boosted its full-year revenue outlook to a range of $7.65–$7.66 billion.

This marks the eighth consecutive quarter where the company has surpassed both earnings and revenue projections—a remarkable achievement few enterprises can claim.

Government Segment Shines While Commercial Underdelivers

The government division emerged as the clear winner, generating $687 million in revenue and handily exceeding the $610.5 million analyst consensus.

The challenge emerged from the commercial business. U.S. commercial revenue totaling $595 million landed below expectations, proving sufficient to trigger negative sentiment immediately following the release.

Palantir had previously projected U.S. commercial revenue growth of at least 115% throughout fiscal 2026. The Q4 2025 period saw this segment expand 137% year-over-year to $507 million, establishing elevated expectations heading into this quarter.

CEO Alex Karp previously characterized Palantir’s Rule of 40 metric as “an incredible 127%,” positioning the enterprise as “an n of 1.” Tuesday’s earnings release maintained this positioning without reservation.

Valuation Multiples Remain Stratospheric

Despite exceptional growth metrics, the stock commands a trailing price-to-earnings ratio of 232x, a forward P/E of 112x, and a price-to-sales multiple reaching 78x.

Industry competitors including Snowflake, ServiceNow, and Microsoft also trade at elevated valuations—yet none approach Palantir’s price-to-sales premium.

This valuation disconnect became the focal point for skeptical investors Tuesday, even as broader technology sector sentiment remained generally supportive.

Rosenblatt Securities reaffirmed its optimistic $225 price objective, highlighting Palantir’s ontology platform as critical enterprise AI infrastructure. The Street’s consensus price target currently stands at $180.68.

Analyst coverage remains divided: 19 Buy recommendations, 10 Hold ratings, and 2 Sell calls. Recent insider transaction activity has skewed heavily toward selling, with 72 net sell transactions recorded.

Interestingly, Polymarket participants had assigned a 99% probability to PLTR declining on May 5, even prior to the earnings announcement—an unusual instance where prediction markets anticipated the negative reaction.

Reddit community sentiment shifted from neutral toward bullish territory following the earnings beat, registering a score of 60. However, the broader composite sentiment indicator measured 57.01, reflecting a 5.54-point decline over the trailing seven-day period.

Technical analysts are monitoring the $130 price level as critical support heading into the week’s conclusion.

Solana co-founder Anatoly Yakovenko said a major upgrade to the network, dubbed Alpenglow, is expected to arrive as soon as this year, potentially within the next quarter, marking what he described as a pivotal step in the blockchain’s technical evolution.

“So the Alpenglow release is basically due sometime this year, I think next quarter,” Yakovenko said during a fireside panel at Consensus Miami 2026. “That, to me, is this exciting step in the evolution of the protocol.”

In simple terms, Alpenglow is about making Solana faster, more predictable and more secure at its core. Blockchains like Solana rely on a network of computers to agree on the order of transactions. Today, that process can introduce delays or uncertainty depending on network conditions.

Alpenglow aims to tighten those guarantees. Yakovenko described a system where transaction confirmations approach the physical limits of how fast information can travel, essentially, near the “speed of light” around the globe. For users and developers, that means quicker finality (knowing a transaction is permanently settled) and a more reliable foundation for building applications.

He framed the release of Alpenglow as a transition from Solana’s early innovations to a more mature phase focused on guarantees around performance and reliability.

The upgrade builds on Solana’s original design, which emphasized high throughput, like the ability to handle large volumes of transactions, but shifts focus toward consistency and timing precision. That matters for financial applications, where milliseconds can affect trading, payments or other time-sensitive activity.

If successful, Alpenglow could strengthen Solana’s pitch as infrastructure for global-scale financial systems, where both speed and certainty are critical.

“That, to me, is this exciting step in the evolution of the protocol,” Yakovenko said.

Read more: Solana Set for Major Overhaul After 98% Votes to Approve Historic ‘Alpenglow’ Upgrade