Key Takeaways
- • Figure Technology Solutions is acquiring Kiavi, the nation's top residential transition loan (RTL) lender, for $717 million, with Figure acquiring the technology and operating platform while a joint venture between Figure and Sixth Street acquires the balance sheet assets.
- • The deal adds more than $7 billion in annual first-lien volume to Figure Connect and contributes over $100 million in monthly flow to Democratized Prime, Figure's blockchain-native warehouse marketplace, unlocking a $200 billion annual addressable origination opportunity.
- • Figure's first-lien lending segment grew approximately 2.5 times year-over-year in 2025, with the company projecting first-lien loans will represent more than 40% of consumer loan marketplace volume by 2027, reflecting a strategic pivot toward a market roughly 25 times larger than second-lien lending.
- • Kiavi specializes in financing residential real estate investors through short-term residential transition loans and long-term debt service coverage ratio (DSCR) loans, bringing established investor-lending infrastructure and customer relationships onto Figure's tokenized marketplace platform.
Summary
Figure Technology Solutions has agreed to acquire Kiavi for $717 million in a transaction designed to significantly expand the blockchain-native lender's presence in investor-property financing. The deal structure divides Kiavi's assets: Figure acquires Kiavi's technology and operating platform directly, while a joint venture between Figure and global investment firm Sixth Street assumes the balance sheet assets, combining blockchain capital markets infrastructure with established lending operations.
The acquisition immediately enhances Figure's scale in the first-lien mortgage space, adding more than $7 billion in annual first-lien origination volume to Figure Connect, the company's marketplace platform for loan origination, funding, sale, and trading. Additionally, the deal contributes over $100 million in monthly loan flow to Democratized Prime, Figure's blockchain-native warehouse marketplace. Together, these additions represent access to a $200 billion annual addressable origination opportunity in investor-property lending.
Kiavi's specialization in residential real estate investor financing—through short-term residential transition loans and long-term debt service coverage ratio (DSCR) loans—aligns with Figure's strategic emphasis on first-lien lending expansion. Figure reported that its first-lien segment grew approximately 2.5 times year-over-year throughout 2025, demonstrating accelerating market traction. The company projects that first-lien loans will comprise more than 40% of total consumer loan marketplace volume by 2027, reflecting a deliberate repositioning toward a market segment roughly 25 times larger than the second-lien mortgage market that historically anchored its business model.
This acquisition positions Figure to consolidate investor-lending workflows onto its tokenized marketplace infrastructure, leveraging Kiavi's established customer base and operational platform while scaling loan distribution, securitization, and trading capabilities through blockchain-native capital markets rails. The Sixth Street partnership provides institutional capital depth to support balance sheet growth, a critical factor in managing the significant loan volumes the combined platform is expected to originate.
The acquisition immediately enhances Figure's scale in the first-lien mortgage space, adding more than $7 billion in annual first-lien origination volume to Figure Connect, the company's marketplace platform for loan origination, funding, sale, and trading. Additionally, the deal contributes over $100 million in monthly loan flow to Democratized Prime, Figure's blockchain-native warehouse marketplace. Together, these additions represent access to a $200 billion annual addressable origination opportunity in investor-property lending.
Kiavi's specialization in residential real estate investor financing—through short-term residential transition loans and long-term debt service coverage ratio (DSCR) loans—aligns with Figure's strategic emphasis on first-lien lending expansion. Figure reported that its first-lien segment grew approximately 2.5 times year-over-year throughout 2025, demonstrating accelerating market traction. The company projects that first-lien loans will comprise more than 40% of total consumer loan marketplace volume by 2027, reflecting a deliberate repositioning toward a market segment roughly 25 times larger than the second-lien mortgage market that historically anchored its business model.
This acquisition positions Figure to consolidate investor-lending workflows onto its tokenized marketplace infrastructure, leveraging Kiavi's established customer base and operational platform while scaling loan distribution, securitization, and trading capabilities through blockchain-native capital markets rails. The Sixth Street partnership provides institutional capital depth to support balance sheet growth, a critical factor in managing the significant loan volumes the combined platform is expected to originate.
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