Figure Technology Solutions, Inc. (Nasdaq: FIGR) announced on Wednesday, June 10, 2026, that it has reached an agreement to acquire Kiavi for $717 million in cash.
The deal, which aims to accelerate the adoption of real-world asset (RWA) tokenization, involves a strategic partnership with global investment firm Sixth Street to manage Kiavi\u2019s existing balance sheet assets. The acquisition is expected to close in August 2026, marking a major consolidation in the blockchain-integrated lending space.
The transaction represents a major step for Michael Tannenbaum, CEO of Figure, who has been vocal about moving traditional capital markets onto blockchain infrastructure. By absorbing Kiavi, a top-ranked AI-powered lender for residential real estate investors, Figure plans to fold billions of dollars in loan volume into its Provenance Blockchain-based ecosystem.
Investors have closely watched this transition toward on-chain assets, similar to how bitcoin signals shifting market structure as institutional participation Deepens.
Kiavi, formerly known as LendingHome, originated $7.6 billion in loans in 2025 and reported over $250 million in revenue. The company specializes in Residential Transition Loans (RTLs) and Debt Service Coverage Ratio (DSCR) loans. These financial products provide the liquidity real estate investors need to flip properties or manage rental portfolios.
Under the new structure, Arvind Mohan, the current CEO of Kiavi, will transition to the role of Chief Business Officer at Figure once the deal is finalized.
Expanding Figure RWA tokenization network via residential lending
The core of the $717 million deal lies in its ability to scale Figure\u2019s tokenization capabilities. Figure intends to migrate Kiavi\u2019s loan assets onto its Figure Connect and Democratized Prime marketplaces. This shift is designed to reduce the friction typically associated with the secondary mortgage market.
By digitizing these first-lien loans on a blockchain, Figure can automate compliance, streamline servicing, and provide real-time transparency for institutional buyers.
Michael Tannenbaum noted that the acquisition serves as a \”pole vault\” into first-lien diversification. The company projects that by the full year 2027, more than 40% of its total loan marketplace volume will consist of first-lien assets. This is a significant jump from the current level of approximately 20%.
The move aims to capture a slice of a $200 billion annual addressable origination opportunity in the residential investor space.
The acquisition also highlights the growing intersection of artificial intelligence and distributed ledger technology. Figure plans to integrate Kiavi\u2019s AI-driven lending platform with its own agentic AI tools. Specifically, Kiavi\u2019s assets will serve as the debut use case for Adaptor, Figure\u2019s newest AI product. Adaptor focuses on agent-to-agent onboarding, which could further lower the operational costs of managing complex real estate transactions.
Financial projections and the Sixth Street joint venture
The transaction structure is notably capital-light for Figure. While Figure is paying cash for Kiavi Funding Inc.\u2019s common equity, Sixth Street is stepping in to handle the heavy lifting of the balance sheet. This joint venture allows Figure to maintain its high-margin marketplace model without the risks of holding massive debt portfolios.
Sixth Street has a long history of partnering with Figure, and this latest move reinforces their commitment to blockchain-native finance.
From a financial perspective, Figure expects the deal to be immediately accretive to its earnings per share. The company has maintained a medium-term EBITDA margin target of 60%. Executives anticipate an unlevered cash payback on the acquisition in less than four years.
This comes at a time when traditional market participants are increasingly exploring digital asset infrastructure as a means to improve efficiency and lower costs.
Kiavi enters the fold as a highly profitable entity, having recorded over $100 million in EBITDA in 2025. Its success rate on transactions is cited at 95%, significantly higher than the 75% industry average. This reliable performance makes it an ideal candidate for tokenization, as consistent asset quality is vital for maintaining investor trust on decentralized marketplaces.
Integrating Kiavi AI platform into Figure ecosystem
The integration of Kiavi\u2019s technology is expected to add $7 billion in new annual first-lien volume to the Figure Connect marketplace. It will also contribute over $100 million monthly to Democratized Prime, the company\u2019s blockchain-native warehouse marketplace. This surge in volume could solidify Figure\u2019s position as the dominant player in the RWA sector.
Mike Cagney, Figure Co-Founder and Executive Chairman, stated that the on-chain capital markets are still in their infancy. He emphasized that bold moves are required to bring entire asset classes on-chain. By targeting the residential investment market, Figure is moving beyond niche crypto products and into the heart of the U.S. economy.
This strategy mirrors broader trends where mispriced assets are re-evaluated as they enter more efficient, technology-driven trading environments.
As the August 2026 closing date approaches, the focus will shift to how quickly Figure can migrate Kiavi\u2019s operations. The success of this acquisition will likely serve as a blueprint for future M&A activity in the fintech sector. If Figure successfully demonstrates that blockchain can manage $30 billion in cumulative loan volume more efficiently than traditional systems, other lenders may be forced to follow suit.