Figure Technology Solutions Inc has announced a definitive agreement to acquire Kiavi, an AI-powered lending platform for residential real estate investors, for $717 million. The acquisition includes the purchase of Kiavi's balance sheet assets through a joint venture with global investment firm Sixth Street and is expected to add more than $7 billion in annual loan volume to Figure's blockchain-based marketplace. The deal positions Figure to expand its dominance in real-world asset tokenization, where the company already claims roughly 75% of market activity, while tapping into a residential lending market with approximately $200 billion in annual originations.
Figure Expands Blockchain Marketplace Through Kiavi Acquisition
Kiavi focuses on financing for real estate investors who buy, renovate and rent residential properties. It offers Residential Transition Loans and Debt Service Coverage Ratio loans that have become staples of the investment property market. According to Figure Technology Solutions Inc, the acquisition unlocks access to a residential lending market with roughly $200 billion in annual originations. Kiavi is expected to contribute more than $100 million in monthly flow to Democratized Prime, Figure's blockchain-based marketplace that connects lenders and investors.
Kiavi Addition Targets Real-World Asset Tokenization Growth
The deal fits into Figure Technology Solutions' mission of migrating traditional financial assets onto blockchain rails. The company already claims roughly 75% of real-world asset tokenization activity, and with Kiavi's loan volume folded in, it expects to extend that lead considerably. CEO Michael Tannenbaum stated, "Figure is relentless in our pursuit of moving the capital markets onto blockchain rails." He added that the acquisition marks another major step toward tokenization, first-lien lending growth and the company's expanding AI platform.
AI Integration Anchors Loan Processing and Marketplace Efficiency
Artificial intelligence sits at the core of both companies. Kiavi uses AI for loan underwriting, property valuation and document analysis, while Figure Technology Solutions has been building out AI tools designed to sharpen marketplace efficiency. One of those tools, called Adaptor, will use Kiavi as its first real-world deployment. The platform supports agent-to-agent onboarding, helping standardize data across lenders and cutting the time needed to bring new assets into Figure's marketplace.
Acquisition Expected to Support Figure's EBITDA Margin Targets
For investors, the deal highlights the growing weight of tokenized real-world assets in digital finance. Tokenization allows loans and financial products to flow more efficiently through digital marketplaces while trimming costs and improving transparency. Kiavi's addition is also expected to support Figure Technology Solutions' long-term profitability targets. The company reaffirmed its goal of reaching a 60% medium-term EBITDA margin and expects the transaction to contribute positively to earnings.
FAQ
What did Figure Technology Solutions acquire and for how much?
Figure Technology Solutions Inc announced a definitive agreement to acquire Kiavi, an AI-powered lending platform for residential real estate investors, for $717 million. The deal includes the purchase of Kiavi's balance sheet assets through a joint venture with global investment firm Sixth Street.
How much loan volume will the Kiavi acquisition add to Figure's marketplace?
The acquisition is expected to add more than $7 billion in annual loan volume to Figure's marketplace. Kiavi is expected to contribute more than $100 million in monthly flow to Democratized Prime, Figure's blockchain-based marketplace that connects lenders and investors.
What role does AI play in the Figure-Kiavi acquisition?
Kiavi uses AI for loan underwriting, property valuation and document analysis. Figure Technology Solutions has developed an AI tool called Adaptor, which will use Kiavi as its first real-world deployment to support agent-to-agent onboarding and standardize data across lenders in Figure's marketplace.
