Figure Technology Solutions has completed its $717 million acquisition of Kiavi, bringing one of the largest U.S. lenders serving residential real-estate investors onto blockchain-based financial infrastructure.
The deal closed on September 1, according to Figure’s acquisition announcement and a Form 8-K filed with the U.S. Securities and Exchange Commission.
The acquisition gives the crypto industry a major test of whether tokenized lending can expand beyond stablecoins and government bonds. It also offers the fintech sector a real-world test of whether AI-powered underwriting and blockchain-based funding can support institutional lending.
According to Figure’s June 10 acquisition announcement, Kiavi is expected to add more than $7 billion in annual first-lien loan volume to Figure Connect. More than $100 million per month is also expected to flow onto Democratized Prime, Figure’s on-chain lending and borrowing platform.
Why the Kiavi acquisition matters for real-world asset tokenization
Tokenized real-world assets, or RWAs, have grown rapidly, although the market remains relatively centralized. The RWA market reached approximately $65 billion in May, up about 44% from $45 billion at the beginning of 2026, according to market data cited by The Block. Cryptopolitan also examined the trend in a separate report.
Figure already has a significant position in private credit. SEC filing data indicates that the company held around 75% of the tokenized private-credit market at the end of 2025. Provenance Blockchain accounted for about 27% of the overall RWA market by blockchain at the end of May.
The Kiavi acquisition is expected to substantially increase Figure’s tokenized lending volume. Kiavi originated a record $7.8 billion in loans in 2025, adding residential real-estate lending to the range of lending models represented in the RWA market alongside government-backed loans.
How Figure financed the $717 million deal
The transaction consists of two primary components. Figure acquired Kiavi’s technology, operating platform and certain other assets, while a joint venture between Figure and Sixth Street purchased loans from Kiavi’s balance sheet, according to the June 10 transaction announcement.
Figure’s actual cash consideration was approximately $590 million after accounting for cash acquired. In its September 1 Form 8-K, Figure said the payment was funded mainly with proceeds from $600 million of 8.500% senior notes due in 2031. The notes were priced on July 9 and closed on July 14.
At closing, Figure also repaid Kiavi’s outstanding credit obligations and terminated the company’s repurchase arrangement with Deutsche Bank.
Kiavi adds AI and lending technology to Figure
Kiavi contributes more than a loan portfolio. The company operates an AI-driven platform that includes a proprietary home-value engine, automated document-review technology and other tools designed to simplify financing for residential-property investors.
Figure describes blockchain as its structured-data infrastructure and custom AI as its decision layer. Kiavi’s assets are expected to become the first use case for Adaptor, Figure’s agent-to-agent onboarding product.
Kiavi CEO Arvind Mohan is joining Figure as chief business officer and will lead the platform’s rollout.
Adding Kiavi’s talent, platform, and technology to Figure greatly accelerates our roadmap by expanding our marketplace.
— Michael Tannenbaum, Figure CEO
Tannenbaum also emphasized the scale of the home-equity market targeted by Figure.
This transaction represents a massive leap forward for the asset class.
— Arvind Mohan, Kiavi CEO
What the acquisition means for crypto and fintech
For the crypto industry, the central question is whether tokenized private credit can scale in the same way as tokenized U.S. Treasuries. Figure is betting that Kiavi’s origination pipeline, supported by more than 480 active partners, can demonstrate that blockchain-based funding and settlement are competitive with traditional financial infrastructure.
For AI, the deal tests whether automated underwriting, document processing and originator onboarding can reduce the cost of moving an entire lending category onto digital rails.
Figure said its existing third-quarter Consumer Loan Marketplace guidance does not include Kiavi. The company plans to update its outlook when it reports third-quarter results, giving investors the first post-closing indication of whether the projected loan volume translates into actual marketplace growth.
