Investing.com — Determine Know-how Options Inc. is dealing with allegations from brief vendor Morpheus Analysis that the $7.7 billion fintech firm has misrepresented its use of blockchain expertise in its residence fairness lending enterprise.
In keeping with a report launched Thursday, the analysis agency claims Determine doesn’t originate loans on the blockchain regardless of public statements suggesting in any other case. The corporate’s SEC disclosures state that its Mortgage Origination System “doesn’t depend on using blockchain expertise” and that “all asset originations and transfers of possession in our LOS are recorded by conventional documentary processes,” in keeping with the report.
The report states that Determine’s mortgage origination system depends on third-party instruments together with CoreLogic for property valuations and Plaid for revenue verification, just like different digital HELOC lenders.
Former staff quoted within the report expressed considerations in regards to the firm’s blockchain claims. One former worker mentioned, “Previous to becoming a member of Determine, I used to be satisfied that all the pieces was occurring on-chain, like starting to finish. And that’s not the fact.”
Determine’s SEC filings point out that its loans are “digital twins” or “tokenized” representations of real-world belongings “as documented by conventional authorized paperwork,” contradicting statements from co-founder Mike Cagney who has criticized using tokens and digital twins on social media.
The report additionally raises considerations about Determine’s lending practices, noting that delinquent balances of loans held on the market elevated from 3.91% in 2024 to five.46% in 2025. Evaluation of 2024-vintage securitization offers confirmed that 90-plus day delinquencies in Determine’s mortgage swimming pools had been twice as excessive as related swimming pools from Rocket Mortgage and Spring EQ, in keeping with the report.
Morpheus Analysis claims that Determine’s blockchain initiatives, together with Determine Join, Democratized Prime, and YLDS, have failed to achieve vital third-party traction. The report states that 99% of YLDS was owned by Determine and a single passive investor on the finish of 2025.
The report additionally questions the independence of Provenance Blockchain, which Determine describes as an “unbiased Layer 1 blockchain.” Morpheus Analysis states that over 65% of Provenance’s native governance token is owned by Determine, its associates, and Cagney.
Cagney has offered $64 million price of inventory because the IPO at a median value of $28.50 with out making any purchases, in keeping with the report.
Morpheus Analysis disclosed that it holds brief positions in Determine Applied sciences.
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