Figure Acquires Kiavi Platform as $717 Million Real Estate Lending Deal Closes

Figure Technology Solutions has completed its acquisition of Kiavi, a residential real estate lender, in a deal valued at $717 million, bringing Kiavi’s lending technology and loan products into Figure’s blockchain-based capital marketplace. The Nasdaq-listed company said the acquisition will accelerate its plans to build an onchain credit marketplace targeting the $35 trillion home equity market, with Kiavi expected to contribute more than $7 billion in annual loan volume. Deal Structure and Key Terms According to Figure’s Sept. 1 announcement, the 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. The closing comes nearly three months after Figure initially agreed to acquire Kiavi. The total purchase price of $717 million includes the valuation of the acquired assets and the loan portfolio transfer. Figure described Kiavi as an asset-light business that generated more than $250 million in revenue and over $100 million in EBITDA during 2025. Deal Component Value / Detail Strategic Impact Total Purchase Price $717 million Covers technology, platform, and certain assets Annual Loan Volume from Kiavi >$7 billion Expected to flow into Figure’s marketplace Kiavi 2025 Revenue >$250 million Asset-light model with high EBITDA margin Kiavi 2025 EBITDA >$100 million Indicates strong operational efficiency Addressable Origination Market ~$200 billion annually TAM for Kiavi’s residential investor loan products Figure Ecosystem Partners 480+ active Kiavi platform to be integrated across this network Kiavi’s Core Lending Products Kiavi provides financing to residential real estate investors through two primary loan categories: Short-term residential transition loans (RTLs): Used for fix-and-flip or bridge financing on properties being renovated or repositioned. Longer-term debt service coverage ratio loans (DSCR loans): Based on property cash flow rather than borrower income, suitable for buy-and-hold investors. These products address a $200 billion annual addressable origination market, according to Figure’s estimates at the time the deal was announced. Integration into Figure’s Blockchain Marketplace 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. The company projected more than $100 million in monthly flow for Democratized Prime, its onchain credit marketplace connecting lenders with investors. Democratized Prime is designed to tokenize and distribute credit assets, allowing investors to participate in a previously illiquid asset class. Leadership Changes and Executive Commentary Kiavi CEO Arvind Mohan is joining Figure as chief business officer and will oversee the rollout of the platform across Figure’s ecosystem. Mohan previously led Kiavi through its growth phase as a specialized real estate lender. Figure CEO Michael Tannenbaum said in the announcement: “We are thrilled to integrate Kiavi into Figure and welcome its team to our company.” Tannenbaum added that 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. Market Implications and Competitive Landscape The acquisition positions Figure to capture a larger share of the residential real estate lending market by leveraging blockchain technology to streamline origination, underwriting, and secondary market distribution. Traditional real estate lenders typically rely on manual processes and legacy systems, whereas Figure’s blockchain-based infrastructure aims to reduce costs and settlement times. Kiavi’s focus on residential investor loans - a segment that has grown rapidly as institutional and retail investors seek exposure to single-family rentals - provides Figure with a proven origination engine and established borrower relationships. The deal also consolidates two players in the fintech real estate lending space, where competition includes companies such as LendingHome, Groundfloor, and Roofstock. Broader Context: Blockchain in Real Estate Figure has been at the forefront of using blockchain technology for asset-backed lending, having previously launched Provenance, a blockchain network for financial services. The company’s Democratized Prime platform allows issuers to tokenize credit assets and sell them to a broad investor base, bypassing traditional bank syndication. The acquisition of Kiavi aligns with Figure’s strategy to bring real-world assets onto blockchain rails, a trend that has gained momentum among institutional investors seeking yield and diversification. Other major players, including BlackRock and Franklin Templeton, have also explored tokenized real estate and credit products. What Are the Main Differences Between Rtl and Dscr Loans? Residential transition loans (RTLs) are short-term financing for investors who plan to renovate or reposition a property, typically with a 6- to 12-month term. Debt service coverage ratio (DSCR) loans are longer-term mortgages that rely on the property’s rental income rather than the borrower’s personal income, making them suitable for buy-and-hold investors. How Does Figure’s Blockchain Marketplace Work for Real Estate Lending? Figure uses blockchain technology to digitize loan origination, underwriting, and distribution. On Democratized Prime, lenders can tokenize and sell fractional interests in loans to investors, creating a secondary market for credit assets. The platform aims to reduce friction and costs compared to traditional securitization. What Was the Total Purchase Price for the Kiavi Acquisition? The total purchase price of the deal was $717 million, which includes the acquisition of Kiavi’s technology platform, operating assets, and a loan portfolio transfer facilitated by a joint venture between Figure and Sixth Street. Who Is the New Chief Business Officer at Figure? Arvind Mohan, the former CEO of Kiavi, has joined Figure as chief business officer. He will oversee the integration of Kiavi’s platform and technology across Figure’s ecosystem of more than 480 active partners. What Is the $35 Trillion Home Equity Market That Figure Targets? The home equity market refers to the aggregate value of homeowners’ equity in their properties. Figure aims to partner with lenders and homeowners to originate and distribute home equity loans and other credit products using blockchain technology, a market that the company estimates at $35 trillion.