Valon and Figure Expand AI-Blockchain Lending Integration

Valon Technologies and Figure Technology Solutions have expanded their strategic collaboration to apply artificial intelligence and blockchain technologies to mortgage lending operations. The two companies have indicated that their joint efforts are focused on delivering measurable improvements across loan origination, servicing, and portfolio performance, rather than promoting speculative technology narratives. By integrating their respective platforms, the partners aim to address long-standing inefficiencies that have traditionally constrained productivity and transparency in the lending sector.

At the center of the collaboration is Valon’s loan servicing platform, which Figure has adopted to manage a growing loan portfolio. Figure’s use of Valon’s system reflects a shift toward modernized servicing infrastructure designed to improve borrower engagement and operational responsiveness. Early performance data suggests that this integration is already producing tangible results.

Improved Servicing and Delinquency Management

According to early A/B testing outcomes shared by the companies, partnered loans managed through Valon’s platform demonstrated a 40% improvement in delinquency management when compared with conventional servicing approaches. This performance gain has been attributed to Valon’s data-driven workflows and automated processes, which are designed to streamline borrower communications and accelerate issue resolution.

The servicing platform leverages intelligent automation to anticipate borrower needs and surface relevant information more efficiently. As a result, servicing teams are able to respond faster and more accurately, reducing friction during critical stages of the loan lifecycle. The companies have suggested that these improvements contribute to stronger borrower trust and higher retention rates over time.

Originations Surge Through Blockchain Integration

While Figure has adopted Valon’s servicing technology, Valon has simultaneously integrated Figure’s blockchain-based origination tools and capital markets infrastructure. This reciprocal adoption has had a pronounced impact on origination volumes. The companies reported a 23.3-fold increase in loan originations between the first and fourth quarters of 2025 following the integration.

Several operational metrics have been identified as key contributors to this growth. These include a 1.5 times increase in recapture rates for home equity lines of credit, a doubling of funding efficiency per loan officer, and nearly a threefold rise in conversion rates from loan applications to funded loans. Together, these improvements indicate that the combined technology stack is enabling faster decision-making and more efficient use of human capital.

End-to-End Technology Ecosystem

The integration of AI and blockchain has created a unified ecosystem that spans the entire loan lifecycle, from origination through servicing and capital markets activity. Figure’s distributed ledger technology is used to support secure and transparent transactions, allowing for efficient portfolio management, safeguarding, and monetization. The companies have also noted that blockchain-enabled processes have reduced origination costs by several thousand dollars per loan, with these savings now extending to first-lien mortgages.

On the servicing side, Valon’s modular AI framework enables personalized borrower experiences through clearer status updates and faster resolutions. This approach is intended to reduce operational bottlenecks while promoting data-informed decisions across servicing teams.

Industry Implications and Market Impact

Industry observers have described this collaboration as a meaningful departure from legacy systems that have historically slowed innovation in mortgage lending. By pairing blockchain’s immutable recordkeeping for originations with AI-driven predictive analytics for servicing, Valon and Figure are demonstrating how modern infrastructure can support more accessible and efficient home equity solutions.

Borrowers benefit from quicker access to funds and clearer communication, while lenders experience improved productivity and reduced risk exposure. The companies believe that these advantages extend beyond individual loans, supporting scalable growth across the broader lending market, as reflected in the rapid increase in originations.

Outlook for Technology-Driven Lending

Leadership at both firms has expressed confidence in continuing this growth trajectory, pointing to a future in which modular, purpose-built platforms redefine how lending services are delivered. The companies have suggested that, as traditional infrastructure struggles to keep pace with market demands, technology-led partnerships like this one highlight a broader evolution within the industry.

In an environment marked by economic uncertainty, the adoption of AI and blockchain for practical, results-driven improvements is being positioned as a pathway toward more inclusive and efficient home financing, with benefits shared among lenders, borrowers, and the wider financial ecosystem.

The post Valon and Figure Expand AI-Blockchain Lending Integration appeared first on CoinTrust.