- 1Credibly and Figure announced a partnership on May 5 to use blockchain rails for SMB capital markets.
- 2Lenders can join Democratized Prime pools with as little as $10, using Figure's YLDS.
- 3Credibly's SMB pool was expected on the platform that quarter.
Credibly's small business loans are headed to a blockchain-based marketplace where almost anyone can lend against them.
The partnership
On May 5, Credibly announced a strategic partnership with Figure to modernize SMB capital markets using blockchain rails. Figure, a publicly traded company, built a marketplace segment called Democratized Prime that works like a universal warehouse line. CEO Michael Tannenbaum told the Fintech One-on-One podcast that it is much easier to borrow and lend against than a conventional warehouse line, which requires heavy third-party diligence and legal fees.
The platform is popular for mortgages, with HELOC pools available to lend against. It also hosts an auto loan pool from Agora, announced in February. Credibly will add small business loans and revenue-based financing deals, which lenders can fund with as little as $10 at a time. As of this report, Credibly was expected to join that quarter.
How lenders earn
Yield is set one of two ways. In a Dutch auction, participants compete to lend by offering lower rates, which helps the borrower, and the process resets hourly, with the lowest acceptable bids prioritized. Alternatively, live rates adjust automatically with utilization. Auction participants can exit when their funds are not in use or when others are ready to replace them, and live-rate participants can request an exit up to available liquidity.
In a hands-on test, a tester offered to lend a couple hundred dollars at 7.9% APR all-in to a HELOC pool, based on the pool's 8% bid ceiling. The funds were accepted and began earning.
Lending requires YLDS, Figure's SEC-registered security, which is pegged 1:1 to the dollar and earns a little over 3% just for holding at the time of writing. Interest is paid in YLDS, hourly, and can be swapped back to dollars or other assets. YLDS lives on the Provenance blockchain, where activity can be traced with the ZoneScan block explorer. Chainalysis data show stablecoins processed $28 trillion in real economic volume in 2025.
Limits and risks
Transparency does not remove risk. Pool performance, borrower credit quality and liquidity all matter, and participants should understand what holding YLDS entails.
The model is also not for everyone. Credibly has provided over $3 billion to more than 61,000 small businesses and has completed four KBRA-rated securitizations, the latest in Q1 2026 for $124 million, expandable to $225 million. A small funder moving away from syndication is unlikely to be an immediate candidate. One HELOC pool has already taken in $340 million.
For Credibly, greater efficiency and less friction could mean savings it can pass on to customers.
Source reporting: deBanked.
