Figure Acquires Kiavi for $717M, Expands Blockchain Lending

Figure Technology Solutions is set to significantly expand its blockchain-native marketplace by acquiring Kiavi, a prominent AI-driven lender for real estate investors, in a deal valued at $717 million. This strategic move integrates Kiavi's substantial origination volume and technology into Figure's existing infrastructure, aiming to accelerate the tokenization of real estate assets and enhance its first-lien lending capabilities.

The acquisition is structured with a joint venture between Figure and global investment firm Sixth Street acquiring Kiavi's balance sheet assets. This partnership underscores the growing institutional interest in tokenized real estate debt. Kiavi, known for its Residential Transition Loans (RTL) and Debt Service Coverage Ratio (DSCR) loans, processed over $7 billion in annual first-lien volume last year. This influx is expected to add more than $100 million monthly to Figure's Democratized Prime marketplace, a platform designed to connect lenders with investors seeking institutional-grade returns on tokenized assets.

This transaction is poised to propel Figure's mission of bringing all asset classes onto blockchain rails. Figure currently leads the real-world asset tokenization space, accounting for 75% of the market. The addition of Kiavi's operations is anticipated to instantly inject $7 billion in annual volume, further solidifying Figure's dominance. Furthermore, the acquisition deepens Figure's focus on the first-lien segment, which saw a 2.5x year-over-year growth in 2025. With Kiavi's integration, Figure projects its consumer loan marketplace volume to exceed 40% first-lien by 2027, tapping into a market significantly larger than second-lien lending.

A key technological integration will be the deployment of Figure's new AI product, Adaptor, which facilitates agent-to-agent onboarding. Adaptor aims to standardize disparate originator data schemes across Figure's platforms, promising substantial time and resource savings for partners. Kiavi's diverse asset types will serve as the inaugural use case for this advanced AI solution, demonstrating its practical application in streamlining complex financial processes.

Figure is reaffirming its medium-term EBITDA margin target of 60% following this acquisition. The company anticipates that the high-margin, asset-light nature of the acquired Kiavi platform, combined with operational synergies, will lead to accretive earnings per share and an unlevered cash payback in under four years. This financial outlook highlights the strategic and economic rationale behind the deal, positioning Figure for sustained profitability and growth.

Michael Tannenbaum, CEO of Figure, emphasized the deal's significance, stating, "This Kiavi transaction is a further pole vault into tokenization, first-lien diversification and our agentic AI platform." He added that integrating Kiavi's lending capabilities would symbiotically enhance growth for both partners and Figure's consumer loan marketplace. Arvind Mohan, CEO of Kiavi, who will join Figure's executive team as Chief Business Officer, expressed enthusiasm for the opportunity to leverage Figure's blockchain marketplace to set new standards in reach and reliability for the asset class.

The acquisition arrives as the real estate lending sector continues to embrace technological innovation to address manual processes and rigid capital markets. Kiavi's strong performance, including over $250 million in revenue and $100 million in EBITDA last year, reflects the robust demand for its specialized lending products. Figure's integration of AI-powered decisioning, mirroring Kiavi's own expertise, is expected to create significant operational efficiencies and scalability advantages as more asset classes are brought onto the network.