Figure Technology Solutions has entered into a definitive agreement to acquire Kiavi, one of the nation’s largest lenders to residential real estate investors, in a transaction valued at $717 million that significantly expands Figure’s presence in first-lien lending and advances its strategy of bringing traditional financial assets onto blockchain-based infrastructure.
The transaction includes the acquisition of Kiavi’s technology and operating platform by Figure, while a joint venture between Figure and global investment firm Sixth Street will acquire loans held on Kiavi’s balance sheet. Upon closing, the deal is expected to add more than $7 billion in annual first-lien loan volume to Figure’s marketplace ecosystem and create one of the largest blockchain-enabled lending platforms in the residential real estate sector.
New York-based Figure, which operates a blockchain-native marketplace for originating, funding, and trading tokenized financial assets, views the acquisition as a major step in expanding the scale of its real-world asset tokenization efforts. The company said the addition of Kiavi’s residential transition loan (RTL) and debt service coverage ratio (DSCR) lending operations will provide access to an addressable origination market estimated at approximately $200 billion annually.
Kiavi specializes in providing financing to residential real estate investors purchasing, renovating, and operating rental properties. The company has funded more than $30 billion in loans since its founding and has become one of the largest non-bank lenders serving the residential investment property market.
“Figure is relentless in our pursuit of moving the capital markets onto blockchain rails, and nine months past our successful IPO, this Kiavi transaction is a further pole vault into tokenization, first-lien diversification and our agentic AI platform,” said Figure Chief Executive Officer Michael Tannenbaum.
The acquisition supports Figure’s strategy of increasing exposure to first-lien lending, a market substantially larger than the home equity and second-lien categories where the company has historically built its presence. Figure projects that first-lien products could account for more than 40% of consumer loan marketplace volume by 2027 following the integration of Kiavi’s business.
The deal also expands Figure Connect, the company’s consumer credit marketplace, and Democratized Prime, its blockchain-native warehouse financing platform. Figure expects Kiavi to contribute more than $100 million of monthly volume to Democratized Prime, where lenders and investors transact through tokenized infrastructure designed to improve liquidity and reduce operational friction.
Kiavi will also become the first major implementation of Adaptor, Figure’s newly launched artificial intelligence product designed to automate onboarding across disparate lending and asset classes. The technology enables agent-to-agent interactions that standardize loan data and streamline integrations, reducing onboarding timelines that historically required months of manual work.
“For the past 13 years, Kiavi has been focused on powering our data flywheel and proving what’s possible when technology and industry expertise converge,” said Kiavi Chief Executive Officer Arvind Mohan. “This transaction represents a massive leap forward for the asset class.”
Following the transaction’s completion, Mohan will join Figure’s executive leadership team as Chief Business Officer.
The acquisition combines two technology-focused lenders that have leveraged artificial intelligence and automation to modernize traditionally manual lending processes. Figure uses blockchain infrastructure and AI-driven underwriting systems to support loan origination and marketplace operations, while Kiavi has developed proprietary data and valuation technologies, including post-renovation property valuation models and automated document review capabilities.
Figure believes integrating Kiavi’s origination platform onto its blockchain-based infrastructure will reduce funding costs, improve scalability, and increase operating efficiency while maintaining the company’s asset-light business model. Management reaffirmed its medium-term target of a 60% EBITDA margin and expects the acquisition to be accretive to earnings per share.
“As long-standing partners of Figure, we are proud to continue working together as Kiavi joins the Figure platform,” said Michael Dryden, Partner and Head of Asset Based Finance at Sixth Street.
The transaction reflects growing momentum behind the tokenization of real-world financial assets, an area where Figure has established a leadership position. The company estimates it currently accounts for approximately 75% of real-world asset tokenization activity and has originated more than $25 billion in home equity products through its marketplace ecosystem.
By bringing Kiavi’s residential investor lending business onto blockchain rails, Figure is seeking to demonstrate how digital infrastructure can support larger and more complex asset classes while improving efficiency across origination, funding, servicing, and secondary market trading. The acquisition positions the company to further expand its role in modernizing capital markets as institutional investors increasingly embrace tokenized financial assets and AI-enabled lending technologies.
