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$717 million acquisition closes after June agreement
According to Figure's September 1 announcement, the Nasdaq-listed company acquired Kiavi's technology and operating platform along with certain other assets under the merger agreement signed in June. A joint venture between Figure and investment firm Sixth Street purchased loans from Kiavi's balance sheet as part of the transaction.
The closing comes nearly three months after Figure agreed to acquire Kiavi in a transaction carrying a total purchase price of $717 million. Figure expected Kiavi to bring more than $7 billion in annual loan volume into its marketplace and projected more than $100 million in monthly flow for Democratized Prime, its onchain credit marketplace connecting lenders with investors.
Kiavi expands Figure Connect loan inventory
Kiavi provides financing to residential real estate investors through short-term residential transition loans and longer-term debt service coverage ratio loans. Figure described Kiavi as an asset-light business that generated more than $250 million in revenue and over $100 million in EBITDA during 2025, with an estimated $200 billion annual addressable origination market.
The Kiavi brand, technology, and platform will be integrated across Figure's network of more than 480 active ecosystem partners. Figure Connect will provide access to Kiavi's residential lending technology as the company moves the products onto its blockchain-based marketplace infrastructure. Kiavi CEO Arvind Mohan is joining Figure as chief business officer and will oversee the rollout of the platform across Figure's ecosystem.
Deal financed through $600 million senior notes
Figure funded the transaction after completing a $600 million offering of 8.5% senior notes due 2031 in July. The company's regulatory filing showed it paid approximately $590 million in cash consideration, net of cash acquired, at closing. Under the merger structure, Figure's wholly owned Project Mason Merger Sub merged into Kiavi, leaving Kiavi as a wholly owned Figure subsidiary.
The closing follows rapid loan growth for Figure. Second-quarter loan volume reached $4.3 billion, up 77% year over year, while net income increased 192% to $90 million. Consumer loan marketplace volume reached $4.1 billion during the quarter, with Figure Connect accounting for $3.2 billion. Third-party borrowing through Democratized Prime stood at roughly $170 million as of August 6, around 23 times the level recorded at the end of 2025.
Figure continues building tokenized asset business
Figure has been extending its blockchain infrastructure beyond consumer lending. In May, NUVA connected $19 billion of Figure-linked tokenized assets with Ethereum-based decentralized finance markets. Figure's regulated digital asset business expanded during the second quarter, with YLDS circulation reaching $556 million at the end of June, compared with $328 million at the end of 2025.
The company launched the OPEN network for issuing and trading public equities directly through blockchain infrastructure, allowing securities to be self-custodied and settled onchain. When Figure announced the Kiavi transaction in June, it said the acquisition would increase the share of first-lien products in its consumer loan marketplace, with first-lien loans projected to account for more than 40% of full-year marketplace volume by 2027. The company planned to use Kiavi as the first application for agent-to-agent onboarding through Adaptor, Figure's AI product for migrating loan origination onto its infrastructure.
