Figure completes the $717 million acquisition of Kiavi, bringing more real estate credit to the chai

Figure Technology Solutions completes acquisition of Kiavi

Figure Technology Solutions has completed the acquisition of Kiavi, one of the largest non-bank residential real estate investor lenders in the United States. The acquisition integrates Kiavi's technology and operations platform into Figure's blockchain native market. Figure is using the deal to expand its real-world asset (RWA) strategy into real estate credit.

The blockchain company and RWA leader Figure Technology Solutions have completed the $717 million Kiavi acquisition, bringing one of the largest residential real estate investor lenders in the United States into its blockchain-based financial markets.

The transaction was originally announced in June and officially completed delivery on September 1. Figure acquired Kiavi's technology, operating platform and some other assets. In addition, a joint venture formed by Figure and Sixth Street also purchased loans on Kiavi's balance sheet.

Depending on the terms of the transaction, the larger plan is to bring Kiavi's real estate lending business to Figure's blockchain network. Kiavi's platform will be integrated into Figure's network of more than 480 active ecosystem partners. Its Residential Transition Loan (RTL) and Debt Coverage Ratio (DSCR) lending technologies will be made available to users through Figure Connect, the company's blockchain-native credit market.

Details of Figure's transaction with Kiavi

Kiavi focuses on providing loans to residential real estate investors. Its products include short-term residential bridging loans for investors to purchase and renovate properties, and long-term DSCR loans for rental properties.

Figure believes that there are huge opportunities in this market. The company estimates annual launches for this asset class are approximately $200 billion. According to the press release, the deal is also expected to add more than $7 billion to Figure Connect's first lien loan volume annually. Figure expects monthly transaction volume of Democratic Prime, its on-chain lending market, to reach more than US$100 million.

This is critical because Figure positions itself as a blockchain native capital market for the origination, financing, sale and trading of tokenized assets. More than 480 partners currently use its loan origination system and capital markets. To date, Figure and its partners have initiated more than $30 billion in loans.

Figure Connect is one of its fastest-growing businesses. The transaction now provides Figure with a larger pool of real estate credit that can bring it into a blockchain-based market.

Figure CEO is optimistic about the prospects of tokenization in the $35 trillion market

Figure is still focusing on the larger home equity market. CEO Michael Tannenbaum said the company hopes to standardize and expand in the $35 trillion home equity market.

"Adding Kiavi's talent, platform and technology to Figure greatly accelerates our roadmap by expanding our market," Tannenbaum said in an official statement.

This acquisition also includes Kiavi CEO Arvind Mohan into the Figure team. Mohan will serve as Figure's chief commercial officer and will be responsible for leading the promotion of the Kiavi platform in the Figure ecosystem.

Kiavi's transaction brings another traditional financial asset type to Figure. Figure no longer separates real estate lending from its blockchain business, but instead connects Kiavi's technology and loan flows to Figure Connect.

The move comes at a time when tokenization of real-world assets continues to transcend treasury bonds products and stablecoins. Token Terminal data shows that the on-chain RWA market excluding stablecoins has grown 17.8 times in the past three years to reach US$44.6 billion. Real estate currently accounts for approximately $1.3 billion of the market. As top RWA issuers bring real-world credit and property assets online, this leaves huge room for growth.

RWA's growth is all-round. Excluding stablecoins, the on-chain RWA market has grown 17.8 times in the past three years to reach US$44.6 billion, covering treasury bonds, income or proactive strategies, credit funds, gold, energy, stocks, real estate, etc.

This is of great significance to the RWA market. The focus of tokenization is moving beyond crypto tokens. Loans, private equity and real estate are becoming part of the same discussion. Figure is betting that blockchain can make these markets easier to initiate, finance and trade. Kiavi provides a larger-scale real estate loan base for practicing this concept.

The company has not yet included Kiavi's contribution in its existing third-quarter consumer loan market guidance. Figure said it will update its outlook and provide reconciliation information when it publishes third-quarter 2026 results.