Overview
Bernstein has named Figure Technology Solutions as its top stock pick for 2026, based on the firm's view that tokenization is reshaping the origination, financing and trading of credit and equities. In a client note, analyst Gautam Chhugani described tokenization as "a game changer" and identified Figure as a pure-play leader in the emerging space.
Technology and efficiency claims
Bernstein points to Figure's technology stack as the source of its competitive advantage. The firm says that stack removes "both demand side and supply side friction from the traditional credit markets," enabling what Bernstein quantifies as roughly a 90% reduction in operating costs and about a 75% reduction in loan turnaround times. Those efficiency gains are central to Bernstein's thesis that Figure can change economics across lending workflows.
Distribution and cross-sell potential
Figure has assembled a partner network of about 250 firms, which Bernstein characterizes as a meaningful distribution lead. The analyst note emphasizes the potential for cross-selling across home equity lines of credit (HELOCs) and additional loan categories as one path to share gains.
Market model shift via Figure Connect
A key element in Bernstein's view is Figure Connect, which the firm says "transmutes a balance sheet based digital lending model to a marketplace-based liquidity model." According to the note, this transformation provides lending partners with faster funding, better execution and lower costs versus traditional channels, and lays the groundwork for growth in high-margin platform-fee revenues.
Expansion into tokenized equities
Beyond lending, Figure is pursuing tokenized equities under its OPEN framework, starting by tokenizing its own stock. Bernstein notes the tokenized equities arena is "highly competitive," but believes Figure can establish a position by concentrating on institutional liquidity, equity-collateralized loans and its broader Prime ecosystem.
Long-term growth opportunities and rating
Bernstein identifies several long-term growth vectors for Figure, including HELOC share gains, entry into new loan categories and "the potential scale up of democratized prime and equity tokenization." The firm reiterated an Outperform rating and maintained a $72 price target, calling the investment case "compelling" even after a strong year-to-date rally in the stock.
Note: The analysis presented here summarizes the points raised in Bernstein's client note as described above, including direct phrases quoted from that note.