Bernstein analysts are bullish on tokenization, calling it a “game changer” for the financial sector. They see a major shift in how credit and equities are handled. The firm’s top pick for 2026 is Figure Technology Solutions, citing its innovative technology stack that reduces costs and speeds up loan processing. Figure's early mover advantage has built a strong partner network.

Figure's competitive edge comes from its technology, which streamlines traditional credit markets. This leads to substantial cost savings, potentially cutting operating expenses by 90% and loan turnaround times by 75%. The company is expanding into tokenized equities using its OPEN framework, starting with tokenizing its own stock. This move could reshape how stocks are traded.

Bernstein believes Figure Connect is a key driver, transforming lending into a marketplace model. This offers faster funding and lower costs, setting the stage for platform-fee revenue growth. While the tokenized equities market is competitive, Figure may find its niche in institutional liquidity and equity-collateralized loans. The firm maintains an Outperform rating.

This endorsement comes amid growing interest in digital assets and the potential of blockchain technology to disrupt traditional finance. Tokenization allows for fractional ownership and increased liquidity for various assets. Investors should watch how Figure executes its expansion into tokenized equities and the broader adoption of tokenization across financial markets.