I just noticed something interesting in the DeFi ecosystem. Figure and Hastra are making strong moves in tokenized credit, and honestly, the move makes sense. They just added auto loans to their platform, which basically opens a new category of real-world assets for DeFi investors.

This is the first new asset class to arrive at Democratized Prime, the decentralized lending marketplace on Figure Markets. The goal is quite clear: to facilitate the issuance and trading of all types of consumer credit on-chain. Michael Tannenbaum, the CEO of Figure, mentioned that they have already originated over $22 billion in on-chain loans, so the platform has a certain track record.

What I find relevant is the expansion strategy. Hastra started on Solana, but now it’s looking toward Ethereum and other EVM-compatible chains. The auto financing product should be available on Solana first, then extend to Ethereum before June. It’s the kind of move you see when a project wants to scale in DeFi without relying on a single chain.

However, not everything is rosy. Non-prime auto loans carry real risks: higher default rates and, of course, regulatory challenges that no one should ignore. It’s the side that always needs to be considered when talking about real-world assets in DeFi.

That said, Figure’s shares have fallen 12% so far this year, which is notable. But Bernstein analysts are not discouraged: they gave it a “Better than the market” rating with a $67 price target, arguing that the tokenized lending business continues to grow. It’s interesting to see how the market values these DeFi innovations amid short-term volatility.