Figure Technology Solutions has agreed to acquire Kiavi in a $717 million deal that brings the largest U.S. residential transition loan originator onto its blockchain marketplace, accelerating the company's push to move entire asset classes on-chain.
Two-Pronged Acquisition: Platform and Loan Portfolio
The transaction splits into two parts: Figure buys Kiavi's technology and operating platform, while a joint venture with global investment firm Sixth Street acquires the loans on Kiavi's balance sheet. Kiavi runs an AI-powered platform that finances real estate investors who buy, renovate and rent properties, opening what the company calls a $200 billion annual addressable origination opportunity for its tokenized rails. Figure (Nasdaq: FIGR) reported nearly doubling revenue but the stock slid after a Q4 earnings miss.
Kiavi's Track Record: Over $30 Billion in Loans Funded
Founded in 2013 as LendingHome, Kiavi originates short-term Residential Transition Loans and longer-term Debt Service Coverage Ratio (DSCR) loans. It has funded more than $30 billion in loans to date, posting over $250 million in revenue and over $100 million in EBITDA last year. The acquisition is expected to add more than $7 billion in annual first-lien volume to the Figure Connect marketplace and over $100 million in monthly flow to Democratized Prime.
First-Lien Lending Boom: 2.5x Growth in 2025
Figure currently accounts for 75% of real-world asset (RWA) tokenization. The Kiavi deal drives the company deeper into first-lien lending, a segment that grew roughly 2.5 times year-over-year in 2025. Figure estimates the first-lien market is 25 times larger than the second-lien space and projects that consumer loan marketplace will run more than 40% first-lien for the full year 2027. CEO Michael Tannenbaum said: "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."
Adaptor Debuts on Kiavi Loan Data
Kiavi's loans will serve as the first use case for Figure's newest AI product Adaptor, which standardizes originator data across Figure Connect and Democratized Prime through agent-to-agent onboarding. Kiavi CEO Arvind Mohan will join Figure as Chief Business Officer once the deal closes. "This transaction represents a massive leap forward for the asset class," Mohan said. The acquisition follows a volatile period for Figure, which earlier disclosed a data breach tied to a social-engineering attack on an employee.