Figure Technology Solutions has agreed to acquire Kiavi, an AI-driven residential real estate lending platform, in a $717 million deal aimed at expanding its blockchain-based marketplace for tokenized real-world assets.
Deal structure and strategic focus
Under the agreement, Figure will take control of Kiavi’s technology and operational platform, while a joint venture with investment firm Sixth Street will acquire Kiavi’s balance sheet assets. The company plans to transition those assets onto its blockchain infrastructure to streamline loan origination, funding, and secondary trading.
Chief Executive Officer Mike Tannenbaum said the acquisition builds on Figure’s efforts to digitize capital markets following its public listing nine months ago. He positioned the deal as a step toward integrating first-lien loans and scaling its AI-powered systems.
Scale and financial impact
Figure estimates it already accounts for about 75% of real-world asset tokenization activity. The addition of Kiavi is expected to bring roughly $7 billion in annual loan origination volume, along with more than $100 million in monthly flow through its Democratized Prime platform.
Kiavi’s CEO Arvind Mohan will join Figure as chief business officer after the deal closes. The combined entity is targeting an EBITDA margin of 60%, maintaining Figure’s asset-light operating model.
Co-founder and Executive Chairman Mike Cagney said expanding lending products on blockchain remains central to the company’s long-term strategy for on-chain capital markets.
Financial performance and market reaction
In the first quarter of 2026, Figure reported $167 million in adjusted net revenue, exceeding analyst expectations by 6% and rising 92% from a year earlier. Quarterly lending volume reached $2.9 billion, up 113% year-over-year.
Despite strong growth, shares closed down 0.74% at $28.07 and have dropped 25.4% over the past month, reflecting cautious sentiment among traders about execution risks and broader market conditions.
Broader market context
The acquisition comes as tokenization of real-world assets is projected to grow into a multi-trillion-dollar market by 2030. Estimates vary widely, with forecasts ranging from $2 trillion to more than $16 trillion. Figure’s move positions it to capture a share of that growth by digitizing the full lifecycle of mortgage assets.
What to watch
Key factors to monitor include:
- The successful migration of Kiavi’s loan volume onto blockchain infrastructure
- The performance and liquidity of tokenized mortgage assets
- Whether the projected $7 billion annual origination volume materializes on-chain
The deal also ties closely to U.S. housing market conditions. With home price growth expected to remain modest and mortgage rates elevated, loan demand and credit quality will directly influence the volume and attractiveness of assets entering Figure’s platform.
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