Figure Technology Solutions has entered a definitive agreement to purchase Kiavi, an artificial intelligence powered lending company that specialises in residential real estate investments.

The transaction is worth 717 million dollars. It involves a joint venture between Figure and global investment firm Sixth Street to buy the loans from Kiavi’s balance sheet, while Figure absorbs the operating platform and proprietary technology.

The acquisition moves Kiavi’s assets onto Figure’s blockchain infrastructure. The move aims to cut operational costs and friction while sustaining an asset-light corporate model. It is expected to add more than 7 billion dollars in annual first-lien volume to the Figure Connect platform, alongside an extra 100 million dollars every month to Democratized Prime.

Kiavi provides short-term Residential Transition Loans and long-term Debt Service Coverage Ratio loans to property investors. This gives Figure access to a 200 billion dollar addressable market. Last year, Kiavi recorded over 250 million dollars in revenue and over 100 million dollars in EBITDA.

The transition will also serve as the debut for Adaptor, a new artificial intelligence tool from Figure designed for automated agent-to-agent onboarding. The tool aims to standardise data formats across different asset classes.

“Figure is relentless in our pursuit of moving the capital markets onto blockchain rails, and nine months past our successful IPO, this Kiavi transaction is a further pole vault into tokenization, first-lien diversification and our agentic AI platform,” said Michael Tannenbaum, Figure CEO. “Adding Kiavi’s RTL and DSCR capabilities into our partner network will symbiotically supercharge their growth and the growth of our consumer loan marketplace.”

Following the completion of the deal, Kiavi Chief Executive Arvind Mohan will transition to Figure as Chief Business Officer.

“For the past 13 years, Kiavi has been focused on powering our data flywheel and proving what’s possible when technology and industry expertise converge,” Mohan said. “This transaction represents a massive leap forward for the asset class. With Kiavi’s industry-leading platform powered by Figure’s innovative blockchain marketplace, we have the opportunity to deliver an entirely new – and unmatched – standard of reach, reliability, and execution.”

Sixth Street Partner Michael Dryden shared support for the development, stating, “As long-standing partners of Figure, we are proud to continue working together as Kiavi joins the Figure platform. We are pleased to be contributing our residential mortgage and private credit expertise to support Kiavi’s growth as a leading originator.”

Mike Cagney, Figure Co-Founder and Executive Chairman, added, “Blockchain is a big idea, but the on-chain capital markets are in their infancy. Figure needs to make bold moves to bring entire asset classes on chain.”

Barclays Capital advised Figure and Sixth Street, while Jefferies advised Kiavi. Legal counsel included Latham & Watkins, Wachtell, Lipton, Rosen & Katz, and Wilson Sonsini Goodrich & Rosati.