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

DeFi lending platform Aave has filed an emergency motion to vacate a request to seize $71 million worth of ether rescued by Arbitrum’s Security Council following April’s $290 million Kelp DAO hack.

It claims the restraining notice “is causing immediate harm, right this very moment, to blameless third parties,” i.e. Aave users affected by the hack’s fallout.

Law firm Gerstein Harrow filed the restraining notice on May 1, claiming that the stolen funds seized by “potential garnishee” Artbitrum are, in fact, North Korean property. 

The firm requested funds be turned over to “collect unpaid judgements” owed to their clients who had previously been awarded damages, which North Korea hasn’t paid.

Gerstein Harrow has previously taken action against a range of crypto projects, often seeking to stake a claim to North Korea-linked funds.

Read more: DeFi sector in $14B meltdown as $290M rsETH hack fallout burns Aave

Kelp DAO hack’s effects on Aave

April 18’s Kelp DAO hack exploited Layer Zero’s bridging infrastructure to fraudulently release $290 million rsETH tokens.

The hackers, suspected to be North Korea’s notorious Lazarus Group (due to on-chain connections to ByBit and BTC Turk hacks), borrowed $236 million of WETH against the stolen rsETH on Aave.

With outstanding loans made against partially unbacked collateral, Aave faced between $124 million and $230 million worth of bad debt.

Arbitrum Security Council’s rescue was the first step in a week-long effort to secure funding from across the DeFi ecosystem.

Read more: DeFi plays the blame game

DeFi United planned to use the funds to re-back rsETH, before force-liquidating the hackers’ positions via manual oracle adjustment.

That was until Gerstein Harrow threw a spanner in the works on Friday.

Aave has come out strongly against Gerstein Harrow’s theory that “momentary theft triggers possession rights.” It says the reasoning “defies logic, common sense, and the law.”

Comparing the argument to “the kindergarten adage ‘finders’ keepers’,” Aave points out that, even in that case, “the Arbitrum blockchain community has title, not North Korea.”

Judge Margaret Garnett has scheduled a remote court hearing for Wednesday, May 6 to discuss the developments.

Firm’s history of crypto lawsuits

Gerstein Harrow isn’t popular in the crypto community, to say the least.

Crypto security expert Taylor Monahan called the firm “worse than fucking ambulance chasers,” accusing it of attempting to secure a payday off other people’s work.

She points to a similar case involving $2.5 million of frozen USDC traced by fellow blockchain investigator ZachXBT.

ZachXBT also criticized the “predatory” firm for using his work to go after funds for a “victim from 26 years ago that has zero relation to crypto or exploits/hacks.”

Gerstein Harrow has previously brought legal action against DeFi and crypto projects related to PoolTogether, Railgun, Huobi and Nomad Bridge.

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Major US banking associations rejected the Clarity Act’s stablecoin yield compromise, splitting publicly from Coinbase and Circle

Major US banking associations publicly rejected the stablecoin yield compromise brokered by Senators Tillis and Alsobrooks in the Clarity Act. The banking groups argued the deal introduces systemic risk to traditional financial institutions, warning that yield-bearing stablecoins could drain trillions from the deposit base.

Standard Chartered analysts estimated the risk at up to $500 billion in deposit flight by 2028 if an open-ended yield provision were allowed.

Coinbase and Circle both backed the compromise immediately after it was announced, urging the Senate Banking Committee to proceed. Coinbase CEO Brian Armstrong posted “Mark it up” after the text dropped, and Chief Legal Officer Paul Grewal said the language preserves activity-based rewards tied to real platform participation.

The split between banking associations and crypto trade groups now sits at the centre of the committee’s deliberations.

What the compromise actually says

The Tillis-Alsobrooks text draws a firm line: platforms cannot offer yield for simply holding a stablecoin. Rewards remain permissible only when tied to user activity, not passive balances. The framework gives the SEC, CFTC, and Treasury twelve months to define exactly what reward programs are permissible under the new language.

Banking associations, including the North Carolina Bankers Association, urged members to contact Senator Tillis’s office and demand changes, reopening a compromise they had helped negotiate just weeks earlier.

Ripple CEO Brad Garlinghouse, speaking at Consensus 2026 in Miami on May 5, said he still believes the bill will pass, describing the past week as a “big positive shift” even as the committee vote remains unscheduled. The Memorial Day recess begins May 21, leaving a narrow window for either side to claim a win before the legislative clock runs out.