TheBlock
Figure Technology Solutions has agreed to acquire Kiavi, an AI-powered residential real estate lending platform, in a $717 million deal that will bring Kiavi's loan origination flow and funding distribution onto Figure's blockchain marketplace rails. A joint venture between Figure and Sixth Street will simultaneously purchase Kiavi's balance sheet assets.
Why it matters
Figure already claims 75% of real-world asset tokenization, and this acquisition is a direct bid to entrench that position. Kiavi is expected to contribute $7 billion in annual volume, including over $100 million of monthly flow on Figure's Democratized Prime platform. CEO Michael Tannenbaum framed the deal as a "pole vault into tokenization, first-lien diversification and our agentic AI platform" — language that signals the company is treating on-chain capital markets as a structural, not speculative, bet. Co-founder Mike Cagney added that "on-chain capital markets are in their infancy" and that Figure needs to make bold moves to bring entire asset classes on chain.
Market impact
Figure's Q1 2026 results gave the deal a strong financial backdrop: $167 million in adjusted net revenue, up 92% year-over-year and 6% ahead of consensus, with loan volume hitting $2.9 billion, up 113% year-on-year. The combined business is expected to support a medium-term EBITDA margin target of 60%. Despite the headline, Figure's Nasdaq-listed shares (FIGR) closed down 0.74% at $28.07 on Wednesday and remain 25.4% lower over the past month — suggesting the market is still digesting the acquisition premium against near-term execution risk.
Frequently asked questions
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How does the Kiavi acquisition change Figure's position in RWA tokenization?
Figure already claims 75% of real-world asset tokenization. Adding Kiavi brings $7 billion in annual loan volume onto its blockchain rails, deepening its lead and expanding its asset class coverage into AI-powered residential real estate lending.
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What role does Sixth Street play in the $717M Kiavi deal?
Sixth Street is forming a joint venture with Figure specifically to purchase Kiavi's balance sheet assets, while Figure acquires Kiavi's technology and operating platform — splitting the deal structure between strategic and financial components.
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What EBITDA margin is the combined Figure-Kiavi business targeting?
Figure described Kiavi as a high-margin, asset-light platform and said the combined business is expected to support a medium-term EBITDA margin target of 60%.
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