Figure Technology Solutions has taken a big step forward by buying AI-powered real estate lender Kiavi. This move brings more real estate assets onto the blockchain and gives Figure a strong new way to grow its lending business.
Details of the Big Deal
The purchase price for Kiavi is $717 million in cash. Figure and global investment firm Sixth Street formed a joint venture for this deal. Figure put in $538 million while Sixth Street added $179 million. The transaction is set to close in the second half of 2026 after getting needed approvals.
Figure started with blockchain for home equity loans known as HELOCs. Now with Kiavi the company is moving deeper into housing finance. Kiavi focuses on loans for real estate investors who want to buy fix or rent properties. Its main products are short-term residential transition loans and long-term rental loans called DSCR loans.
How Tokenization Changes Lending
Figure runs a marketplace for creating funding trading and selling tokenized assets. Tokenization puts real world assets like loans onto blockchain networks. This process can cut costs boost liquidity and keep a light capital model with high margins.
Analysts see the Kiavi deal as a smart way to add a high-volume loan engine in areas that are not yet crowded. It creates a quick link between making loans and moving them on blockchain. Kiavi brought in about $250 million in revenue and $100 million in EBITDA last year which shows strong results.
New AI Tool Gets Its First Test
Figure is also using this purchase to launch its new agentic AI product called Adaptor. This tool helps AI agents handle onboarding for loan originations. Kiavi assets will be the first real test case for Adaptor. The goal is to make loan processes faster and smoother through AI-to-AI connections.
Figure CEO Michael Tannenbaum said the deal is a major leap into tokenization first-lien loans and the AI platform. Adding Kiavi RTL and DSCR products will help both sides grow faster in the partner network.
Positive Views from Market Experts
Research notes from several firms show strong support for the transaction. One group noted the creative structure lets Figure gain technology people and underwriting tools without heavy balance sheet use. They called Kiavi a natural fit because it extends Figure core HELOC work into new loan types.
Another analyst pointed out that the deal grows Figure total addressable market into a $200 billion category of residential transition loans. Early estimates suggest it could add $180 to $200 million in revenue and $60 to $80 million in EBITDA while lifting earnings per share by a small amount.
Funding and Future Plans
Figure plans to issue $600 million in senior unsecured notes to pay for the deal. The company expects to recover the full purchase price in less than four years. After closing Kiavi RTL loans will go to a Sixth Street joint venture while Figure takes the DSCR loans and operating platform.
This structure keeps Figure focused on its capital-light approach while expanding into new parts of the housing market. The move also shows how blockchain and AI can work together to improve traditional finance areas like real estate lending.
Why This Matters for the Industry
Bringing real estate loans onto blockchain can open new doors for investors and borrowers. It allows faster trading of assets better transparency and lower costs over time. Figure is now positioned to handle more types of loans in one tokenized system.
The Kiavi purchase shows how fintech firms are using acquisitions to add scale and new technology at the same time. With Adaptor ready for testing the company is set to explore more AI uses in loan workflows.
Overall the deal strengthens Figure place in the growing space where blockchain meets housing finance. It creates fresh chances for growth in both loan production and digital asset distribution.
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