Figure Technology Solutions has agreed to acquire Kiavi in a $717 million deal that pulls the largest U.S. residential transition loan originator onto its blockchain marketplace and widens the company’s drive to move entire asset classes on-chain.

The transaction splits across two buyers, with the firm (Nasdaq: FIGR; OPEN: FGRS) purchasing Kiavi’s technology and operating platform while a joint venture between it and global investment firm Sixth Street buys the loans on Kiavi’s balance sheet. The deal hands the buyer an AI-powered platform that finances real estate investors who buy, renovate, and rent properties, opening what it calls a $200 billion annual addressable origination opportunity for its tokenized rails.

Kiavi originates short-term Residential Transition Loans and longer-term Debt Service Coverage Ratio loans, the latter already a growing line within the portfolio. 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, the blockchain-native warehouse marketplace.

Kiavi Loans Move Onto Figure’s Blockchain Rails

The company currently accounts for 75% of real-world asset tokenization, and folding Kiavi’s lending onto its infrastructure is meant to strip out cost and friction while preserving the capital-light model. The deal pushes the firm deeper into first-lien lending, a segment that grew roughly 2.5 times year-over-year in 2025 within a market it estimates is 25 times larger than the second-lien space. The consumer loan marketplace is projected to run more than 40% first-lien for the full year 2027.

The acquisition follows a volatile stretch for the stock, which slid after a fourth-quarter earnings miss even as revenue nearly doubled. Kiavi enters with momentum of its own, reporting more than $250 million in revenue and over $100 million in EBITDA last year and more than $30 billion in loans funded since launching as LendingHome in 2013.

Michael Tannenbaum, the company’s CEO, framed the deal as a continuation of that strategy.

“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 Anchors Figure’s Agentic Push

Kiavi’s loans will serve as the first use case for Adaptor, the newest AI product, which standardizes originator data across Figure Connect and Democratized Prime through agent-to-agent onboarding. Kiavi CEO Arvind Mohan will join the executive team as Chief Business Officer once the deal closes, while Barclays Capital advised the buyers and Jefferies advised Kiavi.

“This transaction represents a massive leap forward for the asset class,” Mohan said.

The Kiavi push extends a fast-moving year for the company, which months earlier disclosed a data breach tied to a social-engineering attack on an employee.