Figure acquires Kiavi platform as $717 million real estate lending deal closes

Figure Technology Solutions has completed its acquisition of real estate lender Kiavi, bringing its lending technology and residential investor loan products into Figure’s blockchain-based capital marketplace.

According to Figure’s Sept. 1 announcement, the Nasdaq-listed company acquired Kiavi’s technology and operating platform along with certain other assets under the merger agreement signed in June. A joint venture between Figure and investment firm Sixth Street purchased loans from Kiavi’s balance sheet as part of the transaction.

Figure completes Kiavi acquisition after $717 million agreement

The closing comes nearly three months after Figure agreed to acquire Kiavi in a transaction carrying a total purchase price of $717 million.

As crypto.news previously reported, Figure expected Kiavi to bring more than $7 billion in annual loan volume into its marketplace. The company projected more than $100 million in monthly flow for Democratized Prime, its onchain credit marketplace connecting lenders with investors.

Kiavi provides financing to residential real estate investors through short-term residential transition loans, or RTLs, and longer-term debt service coverage ratio loans, known as DSCR loans.

At the time the deal was announced, Figure described Kiavi as an asset-light business that generated more than $250 million in revenue and over $100 million in EBITDA during 2025. The company estimated that Kiavi’s lending products represented a $200 billion annual addressable origination market.

Figure said the Kiavi brand, technology and platform will now be integrated across its network of more than 480 active ecosystem partners. Figure Connect will provide access to Kiavi’s residential transition and DSCR lending technology as the company moves the products onto its blockchain-based marketplace infrastructure.

Kiavi CEO Arvind Mohan is joining Figure as chief business officer and will oversee the rollout of the platform across Figure’s ecosystem.

“We are thrilled to integrate Kiavi into Figure and welcome its team to our company,” Figure CEO Michael Tannenbaum said.

Tannenbaum said adding Kiavi’s platform, technology and staff accelerates Figure’s marketplace plans as the company works with partners in the $35 trillion home equity market.

Figure financed deal after $600 million note offering

Figure funded the transaction after completing a $600 million offering of 8.5% senior notes due 2031 in July.

The company’s Sept. 1 regulatory filing showed that it paid approximately $590 million in cash consideration, net of cash acquired, at closing. The amount remains subject to customary adjustments involving Kiavi’s cash, debt, transaction expenses and operating net working capital.

Under the merger structure, Figure’s wholly owned Project Mason Merger Sub merged into Kiavi, leaving Kiavi as a wholly owned Figure subsidiary.

The closing follows a period of rapid loan growth for Figure. Second-quarter loan volume reached $4.3 billion, up 77% year over year, while net income increased 192% to $90 million.

Consumer loan marketplace volume reached $4.1 billion during the quarter, a 72% increase from the same period a year earlier. Figure Connect accounted for $3.2 billion of that volume.

Small and medium-sized business loan volume rose 57% from the first quarter, while third-party borrowing through Democratized Prime stood at roughly $170 million as of Aug. 6. The figure was around 23 times the level recorded at the end of 2025.

Figure said during its second-quarter results that the Kiavi transaction remained on schedule to close during the second half of 2026.

Kiavi expands Figure Connect loan inventory

The acquisition gives Figure another source of residential credit assets as it expands Figure Connect and Democratized Prime.

Figure had already been pursuing a larger position in residential lending. Executive chairman and co-founder Mike Cagney said in May that the company was targeting the first-lien mortgage market, with particular attention on mortgages below $300,000.

Cagney said Figure’s technology could reduce costs associated with originating smaller mortgages. The company’s home equity line of credit system can approve applications in about five minutes and provide funding within three days, compared with conventional processes that can take several weeks.

Figure’s consumer loan marketplace had recorded $1.34 billion in volume in April, up 108% from the same month in 2025.

Kiavi extends that loan inventory into financing used by residential real estate investors. When Figure announced the transaction in June, it said the acquisition would increase the share of first-lien products in its consumer loan marketplace, with first-lien loans projected to account for more than 40% of full-year marketplace volume by 2027.

The company planned to use Kiavi as the first application for agent-to-agent onboarding through Adaptor, Figure’s AI product. Figure said the technology would be used to migrate loan origination onto its infrastructure while reducing operating costs.

Sixth Street’s participation builds on an existing relationship between the two firms. In February 2025, the investment manager committed $200 million to a joint venture with Figure designed to provide more than $2 billion of liquidity to the non-agency mortgage market.

Figure continues building tokenized asset business

Figure has been extending its blockchain infrastructure beyond consumer lending as it brings different financial assets onto its marketplace.

In May, Animoca-backed NUVA connected $19 billion of Figure-linked tokenized assets with Ethereum-based decentralized finance markets. The marketplace launched with products tied to Figure’s YLDS token and a home equity credit pool.

Figure’s regulated digital asset business expanded during the second quarter as well. YLDS circulation reached $556 million at the end of June, compared with $328 million at the end of 2025.

Earlier this year, the company launched the OPEN network for issuing and trading public equities directly through blockchain infrastructure. Figure said the system allows securities to be self-custodied and settled onchain, while its own shares are expected to be exchangeable between OPEN and its Nasdaq-listed stock.

Kiavi’s contribution has not been included in Figure’s existing third-quarter Consumer Loan Marketplace guidance.

Figure said it plans to revise that outlook when it reports its third-quarter 2026 results, including a reconciliation showing how the combined business changes the guidance previously issued by the company.