Figure Technology Solutions has signed a definitive agreement to acquire AI-powered real estate lending platform Kiavi for $717 million to move a $200 billion annual mortgage origination market onto blockchain infrastructure. The transaction, arriving nine months after Figure's initial public offering, includes a joint venture with global investment firm Sixth Street to purchase existing loans directly off Kiavi's balance sheet.
By absorbing Kiavi's short-term residential transition loans and long-term rental property options, Figure projects its marketplace volume will surpass 40% first-lien loans by the full year 2027. Figure CEO Michael Tannenbaum stated that the transaction represents a "pole vault into tokenization, first-lien diversification and our agentic AI platform."
The programmatic addition of Kiavi instantly inserts $7 billion in annual loan volume into Figure's ecosystem, which currently represents 75% of all real-world asset tokenization. The integration targets a minimum of $100 million in monthly transactional flow through Democratized Prime, Figure's blockchain-native warehouse marketplace.
To handle the incoming portfolio without manual data translation, Figure will use the acquisition as the launch asset class for Adaptor, its newest agentic AI engine designed to normalize varying originator data schemes. Kiavi enters the combined company following a record financial year, posting $250 million in revenue and $100 million in EBITDA.
The structured consolidation allows Figure to maintain its medium-term 60% EBITDA margin target due to the low-overhead, asset-light nature of Kiavi’s core underwriting software. Following the closing of the deal, Kiavi CEO Arvind Mohan will transition to Figure's executive leadership team as Chief Business Officer to manage the specialized valuation and document review workflows. Figure Co-Founder and Executive Chairman Mike Cagney stated, "Blockchain is a big idea, but the on-chain capital markets are in their infancy. Figure needs to make bold moves to bring entire asset classes on chain."
