Figure's $717M Kiavi Deal Pushes Tokenized Loans Into Housing

Figure agreed to acquire Kiavi for $717 million, bringing the residential lender's origination pipeline onto its blockchain marketplace. The deal adds more than $7 billion in annual first mortgage volume to Connect, Figure's tokenization platform.

Kiavi originates loans for single-family rental investors, a market Figure estimates at $200 billion in potential volume. The acquisition gives Figure direct access to that origination flow, rather than relying on third-party lenders to feed its blockchain settlement rails.

The deal structure is all stock. Kiavi shareholders will receive Figure equity, aligning both firms around the platform's growth. Figure said the transaction is expected to close in the second quarter.

Figure has been building Connect as a blockchain-based marketplace for loan origination, servicing, and trading. The platform uses Provenance Blockchain, a fork of Cosmos, to record loan data and automate payments. Most of Figure's volume to date has come from home equity lines and personal loans. Adding first mortgages at scale changes the asset mix.

First mortgages carry lower yields than HELOCs but offer more predictable cash flows and deeper secondary market demand. Fannie Mae and Freddie Mac buy conforming loans; private-label securitization absorbs non-agency paper. Figure's bet is that putting those loans onchain from origination through servicing will cut costs enough to compete with traditional warehouse lines and servicing systems.