Figure Expands Blockchain Lending Footprint With $717 Million Kiavi Deal
Figure Technology Solutions is accelerating its expansion into tokenized real-world assets after agreeing to acquire digital mortgage lender Kiavi in a deal valued at $717 million, a transaction that could bring more than $7 billion in annual real estate loan volume onto blockchain-powered infrastructure.
Summary:
- Figure will acquire Kiavi in a $717 million transaction structured to keep loan assets off its balance sheet.
- Kiavi is expected to contribute more than $7 billion in annual first-lien loan originations.
- Figure says the deal strengthens its leadership position in real-world asset tokenization, where it claims roughly 75% market share.
The acquisition marks one of the largest consolidation moves in the tokenized private credit market this year and strengthens Figure’s position as traditional financial assets increasingly migrate onto blockchain rails. Figure said the transaction will expand its exposure to first-lien residential lending, a market substantially larger than its existing second-lien business.
The movement arrives as institutional investors continue to increase exposure to tokenized assets, one of the fastest-growing segments of digital finance. Industry data shows the tokenized real-world asset market has expanded rapidly over the past year as firms seek to move traditionally illiquid assets such as private credit, real estate loans and Treasury products onto blockchain networks.
A Capital-Light Expansion Into Real Estate Credit
Unlike traditional acquisitions that include both operations and loan portfolios, Figure structured the transaction to separate the lending platform from the underlying assets.
Figure will acquire Kiavi’s technology platform, origination business and operating infrastructure. At the same time, a joint venture between Figure and investment firm Sixth Street will acquire Kiavi’s balance sheet assets.
The structure allows Figure to expand loan origination volume without significantly increasing balance sheet risk. Analysts view the approach as consistent with the company’s broader strategy of building blockchain-based financial infrastructure while relying on institutional capital partners to fund underlying assets.
Kiavi specializes in Residential Transition Loans and Debt Service Coverage Ratio loans, two rapidly growing segments of the U.S. residential investment property market. The company generated more than $250 million in revenue and over $100 million in EBITDA during 2025, according to transaction disclosures.
Figure expects the acquisition to support its long-term profitability goals while expanding access to higher-quality collateral pools that can eventually move through tokenized lending channels.
Tokenization Moves Beyond Crypto-Native Assets
The transaction highlights a broader shift taking place across capital markets.
Early tokenization efforts focused primarily on crypto-native assets. Today, firms increasingly target traditional financial products such as private credit, mortgages, Treasury securities and commercial real estate loans.
Figure’s strategy centers on bringing those assets onto blockchain infrastructure through its Figure Connect marketplace and Democratized Prime platform. Management believes blockchain-based settlement can reduce costs, improve transparency and increase liquidity across traditionally fragmented credit markets.
READ MORE: HKMA Seeks Global Lead in Tokenized Bond Infrastructure
The company also plans to integrate Kiavi into Adaptor, its recently launched artificial intelligence platform designed to automate onboarding, underwriting and asset verification processes across multiple lending categories.
Industry participants increasingly view the combination of AI-driven underwriting and blockchain settlement as a potential catalyst for modernizing private credit markets, where manual workflows often slow funding decisions and increase operational costs.
Institutional Adoption Gains Momentum
The acquisition comes amid growing institutional interest in real-world asset tokenization.
Major asset managers, banks and alternative investment firms have expanded tokenization initiatives over the past year as regulators in several jurisdictions have provided greater clarity around blockchain-based financial products.
Figure Executive Chairman Mike Cagney described the acquisition as a significant step toward moving larger portions of capital markets infrastructure on-chain. Chief Executive Officer Michael Tannenbaum said the transaction provides immediate scale in first-lien lending while accelerating the company’s tokenization strategy.
Kiavi Chief Executive Officer Arvind Mohan will join Figure’s executive leadership team as Chief Business Officer following the completion of the transaction.
For investors, the deal represents more than a conventional fintech acquisition. It reflects a broader effort to connect one of the largest asset classes in global finance – real estate credit – to blockchain-based capital markets infrastructure.
If successful, the integration could provide a blueprint for how traditional lending businesses transition from legacy financial systems to tokenized marketplaces, a trend many industry executives believe remains in its early stages despite rapid growth across the broader real-world asset sector.
This $717 million deal isn’t just an acquisition; it’s a masterclass in “capital-light” growth. By splitting the technology platform from the loan assets (via the Sixth Street JV), Figure is effectively scaling its blockchain infrastructure – and $7B in annual loan volume – without ballooning its own balance sheet risk.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
