Figure Acquires Kiavi for $717 Million: Blockchain Giant Adds $7B in Real Estate Loans

What You'll Learn

• What the $717 million Figure Kiavi transaction actually includes
• How the Figure and Sixth Street joint venture separates loan assets
• Why RTL, DSCR, Figure Connect, and Adaptor matter to the strategy
• Which closing terms are projections rather than completed results

What the Figure Kiavi Acquisition Announced

Figure Technology Solutions announced a definitive agreement to acquire Kiavi on June 10, 2026. The total transaction purchase price is $717 million, according to Figure's investor release. The deal has two connected parts. Figure will acquire Kiavi's technology and operating platform, while a joint venture between Figure and Sixth Street will buy Kiavi's balance-sheet assets and the loans held there. That distinction matters because the announcement is not a statement that Figure alone will take every Kiavi loan onto its own balance sheet.

Kiavi is an AI-powered lender for residential real estate investors. Its products include short-term Residential Transition Loans, known as RTL, and longer-term rental property loans based on Debt Service Coverage Ratio, known as DSCR. Figure says the acquisition would add over $7 billion in new annual first-lien volume to Figure Connect and more than $100 million in monthly flow to Democratized Prime. Those are announced business targets and volume descriptions, not proof that the post-closing integration has already happened.

The deal therefore combines an operating platform, loan products, a financing arrangement, and a blockchain marketplace strategy. The primary announcement is available in the Figure investor release. An independent Banking Dive report confirms the price, the joint venture, the products, and the announced volume figures. Readers can compare this transaction with the site’s earlier DeFi funding coverage, while keeping acquisition price and funding-round size as separate measures.

Deal Terms at a Glance

The presentation breaks the $717 million total into a $538 million Figure contribution and a $179 million Sixth Street contribution. It also describes a 100% cash purchase at closing. These terms describe the planned transaction, not a completed closing. The Figure Kiavi transaction presentation is the source for the contribution split, payment form, and target timing.

The initial release and an independent dated report did not provide a completed closing date. The presentation gives the second half of 2026 as the target and says the deal remains subject to customary closing conditions and required regulatory approvals. Any later change to that timetable would need to be checked against a new company filing or announcement.

How the Joint Venture Separates the Assets

The structure is designed to keep the loan assets and the operating platform on different paths. The investor presentation says RTL loan assets are to be transferred at closing to a Sixth Street-controlled joint venture. It separately says DSCR loans, Kiavi's technology, and its operating capabilities are to be integrated into Figure. Kiavi management is expected to continue operating the business.

This separation helps explain why a headline can mention both Figure's blockchain marketplace and Sixth Street's private-credit role. The joint venture provides a vehicle for acquiring loans off Kiavi's balance sheet, while Figure receives the technology, operating platform, and selected loan capabilities. It is more precise to describe this as a platform and asset transaction than as a simple purchase of a mortgage portfolio.

Kiavi's RTL and DSCR Lending Model

Kiavi serves residential real estate investors rather than the same borrower segment as a standard owner-occupied mortgage lender. RTL loans are short-term financing products used by investors who may buy and renovate a property before selling or refinancing it. DSCR loans are longer-term rental-property loans evaluated partly through the property’s ability to support debt service. The Figure announcement identifies both products, but it does not provide a full underwriting manual or a new borrower eligibility policy.

The combination gives Figure access to two forms of investor real estate lending. RTL can generate short-duration financing activity tied to property transitions. DSCR can support rental-property financing with a different repayment profile. The strategic point is not that one product replaces the other. It is that Figure can place Kiavi’s data, operating processes, and originations inside a wider marketplace that already handles funding and distribution.

The presentation shows more than $7 billion of Kiavi RTL and DSCR volume and describes Kiavi as a market leader in residential transition lending. Those statements come from company materials. They establish the scale Figure is targeting, but they do not independently prove future growth, credit performance, or investor demand.

Figure Connect, Democratized Prime, and Adaptor

Figure describes Figure Connect as a marketplace for originating, funding, selling, and trading tokenized assets. It describes Democratized Prime as a blockchain-native warehouse marketplace where lenders are matched with investors. The Kiavi transaction is intended to place more first-lien lending activity into those distribution channels. The blockchain layer is therefore presented as financial infrastructure for registration, funding, and transfer rather than as a claim that borrowers will receive a cryptocurrency loan.

Adaptor is important because loan originators often store borrower, property, income, and document data in different schemas. Figure says Adaptor is designed to impose uniformity on disparate originator data schemes and support agent-to-agent onboarding. In the Kiavi plan, the product would be tested on Kiavi assets first. The announcement does not provide a production benchmark for processing time, error reduction, or operating savings, so this article does not invent one.

Readers comparing this strategy with broader crypto infrastructure can review the site’s earlier stablecoin settlement analysis and its article on regulated crypto futures. Those topics are related infrastructure examples, not evidence that the Kiavi transaction has already delivered a financial return. The site’s AI agent account explainer and crypto policy coverage provide additional context on software and regulatory systems around digital finance.

What the $7 Billion Volume Claim Means

The phrase “adds $7 billion in real estate loans” can be misunderstood if volume, balance-sheet assets, and transaction value are treated as the same measure. The purchase price is $717 million. The announced $7 billion figure is an annual first-lien volume addition associated with Kiavi’s RTL and DSCR activity. It is not the price paid for the loans and it is not a forecast of $7 billion in profit.

Figure also says more than $100 million of monthly flow will be added to Democratized Prime. A monthly flow measure and an annual originations measure have different denominators and timing. They should not be multiplied together unless the company provides a clear basis for doing so. The article keeps the figures separate and uses the source’s wording.

Banking Dive independently reported the same $717 million price, the $7 billion annual-volume figure, and the approximately $100 million monthly flow. This cross-check supports the basic transaction narrative, but the operating measures still originate with the companies. They are best read as announced scale metrics subject to closing and integration.

Why First-Lien Exposure Is Central

Figure’s release says the transaction strengthens its first-lien focus. The investor presentation projects that consumer loan marketplace volume could reach more than 40% first-lien for full-year 2027. This is a management projection, not a result already recorded in the marketplace. The presentation also states that the first-lien market is 25 times larger than the second-lien market, which is a company market-size estimate and not an independent industry census.

First-lien loans have priority in the collateral structure, but priority does not eliminate credit, property, funding, servicing, or regulatory risk. The risk profile depends on underwriting, loan-to-value, borrower behavior, property values, interest rates, servicing, and the ability to sell or fund loans. A higher first-lien mix can change the composition and distribution of a marketplace without guaranteeing lower losses or higher margins.

The strategic logic is that Kiavi adds a large residential investor-lending originator to Figure’s existing network. Figure says more than 380 partners use its loan-origination system and capital marketplace. The presentation frames Kiavi as a way to expand distribution of RTL and DSCR products across that partner base. The outcome remains dependent on integration, demand, and loan performance.

Funding, Synergies, and Margin Targets

The presentation says Figure plans to issue $600 million of senior unsecured notes and estimates pro forma corporate debt ratio below 2.0x. It also lists more than $3 billion of forward purchase commitments from Sixth Street. These terms describe the financing and distribution plan. They do not establish that the notes were issued or the commitments were drawn on June 10.

The presentation includes approximately $35 million of expected cost synergies within 24 months and a medium-term adjusted EBITDA margin target of 60%. It also describes a company-defined unlevered simple payback of less than four years. These are forward-looking figures. The presentation says its adjusted EBITDA measures are non-GAAP and may differ from similarly named measures used by other companies. They should not be compared with GAAP margin or another lender’s EBITDA without reconciling definitions.

Figure’s release says Kiavi reported over $250 million of prior-year revenue and over $100 million of reported EBITDA. The presentation uses revenue and adjusted EBITDA labels in its operating metrics. Because those labels are not identical, the article keeps the release wording and the presentation wording separate rather than treating them as one audited series.

Who Runs What After Closing

The announced plan expects Kiavi management to continue operating the business. Arvind Mohan, Kiavi’s CEO, is expected to join Figure’s executive team as Chief Business Officer after the deal closes. The planned leadership arrangement suggests that Figure wants to preserve Kiavi’s lending expertise while connecting it to Figure’s marketplace and data infrastructure.

The division of responsibilities is still subject to completion. RTL assets are planned for the Sixth Street-controlled joint venture. DSCR loans and the technology and operating capabilities are planned for Figure integration. That structure means a future update should identify which product, asset pool, or marketplace channel it is discussing instead of saying that every Kiavi loan moved to Figure Connect.

The original announcement also lists Barclays Capital as exclusive financial adviser to Figure and Sixth Street, Jefferies as exclusive financial adviser to Kiavi, and separate legal advisers for the parties. Those details show that the transaction has an established advisory process, but they do not change the remaining closing conditions.

What Blockchain Changes and What It Does Not

Figure’s stated thesis is that structured blockchain data can serve as an infrastructure layer for capital markets, while AI can serve as a decision and onboarding layer. In that model, an asset record can be registered, financed, sold, and distributed through connected systems. Adaptor is intended to help translate different originator data schemas into a common process.

That architecture can reduce manual reconciliation if the data is complete, correctly mapped, and accepted by counterparties. It does not remove the need for underwriting, servicing, legal documentation, consumer-protection compliance, custody, valuation, or credit-loss controls. It also does not make a loan risk-free. The source documents describe the intended operating model and expected efficiencies, but they do not provide a measured post-closing result.

The distinction is important for readers following the site’s institutional crypto coverage. Tokenization can change how an asset is recorded and distributed without changing the underlying borrower, property, cash flow, or default risk. The Kiavi transaction is therefore a lending and marketplace transaction with a blockchain infrastructure component.

Risks Before the Deal Closes

The first risk is execution. The presentation targets the second half of 2026 and requires customary closing conditions and regulatory approvals. Until those steps are completed, the acquisition remains a definitive agreement rather than a completed integration.

The second risk is funding. The planned senior notes, estimated debt ratio, and Sixth Street commitments must work together with loan performance and investor demand. A warehouse or marketplace can provide distribution capacity, but it does not guarantee that every loan will receive the expected price or funding terms.

The third risk is integration. Moving loan, borrower, property, and document data into a common onboarding system can produce mapping errors, control issues, or implementation delays. Figure says Adaptor will help standardize the process, but the release does not give a measured production error rate or savings figure.

The fourth risk is credit and housing exposure. RTL and DSCR loans depend on property values, rental economics, borrower behavior, interest rates, servicing, and the sale or funding market. The company’s reported loss and margin figures do not predict the performance of future originations.

The fifth risk is regulatory and legal oversight. The source release identifies lending, mortgage, digital-asset, consumer-protection, privacy, data-security, and licensing risks. Those risks matter because a tokenized record still represents a regulated financial asset and does not replace applicable legal obligations.

Conclusion: What the Figure Kiavi Deal Actually Changes

The Figure Kiavi acquisition is a $717 million transaction with a carefully divided structure. Figure plans to acquire Kiavi’s technology and operating platform, while a Figure and Sixth Street joint venture plans to acquire Kiavi’s balance-sheet assets. The strategy brings RTL and DSCR lending into Figure’s marketplace plans and makes Kiavi assets the first stated Adaptor onboarding use case.

The most important figures are the announced over $7 billion of annual first-lien volume, more than $100 million of monthly Democratized Prime flow, a $200 billion annual addressable origination opportunity, and the financing terms shown in Figure’s presentation. Each has a different definition and several are management projections. They should not be read as revenue, profit, or completed post-closing results.

Readers should watch the closing announcement, the final financing, the actual asset transfer, the treatment of RTL and DSCR loans, and later disclosures on volume, credit performance, synergies, and adjusted EBITDA. Until those updates appear, the defensible conclusion is that Figure is using an acquisition and a Sixth Street joint venture to expand a blockchain-enabled lending and distribution platform, not that the promised benefits have already been delivered.