Figure to Acquire Kiavi for $717 Million in AI-Powered Blockchain Lending Expansion

Figure, a fintech company specializing in home equity lending, has agreed to acquire Kiavi, a blockchain-based platform focused on private credit distribution, for $717 million, according to a report by the Scotsman Guide. The deal, announced on June 10, 2026, marks a significant convergence of artificial intelligence (AI) and blockchain technologies in the financial services sector, aiming to scale investor lending and expand access to private credit markets.

The acquisition seeks to combine Figure’s AI-driven underwriting systems with Kiavi’s blockchain infrastructure, which enables transparent and secure transactions in private lending. A Figure spokesperson stated that the integration would “streamline risk assessment and reduce operational friction for investors seeking alternative credit opportunities.” Kiavi’s platform, which has facilitated over $2 billion in private credit deals since its 2022 launch, uses smart contracts to automate loan servicing and compliance, according to the Scotsman Guide report.

Private credit, a rapidly growing segment of the financial industry, involves loans extended to businesses or real estate projects outside traditional banking channels. The sector has attracted institutional investors seeking higher returns than those offered by public markets. Figure’s move to acquire Kiavi underscores the increasing role of technology in democratizing access to private credit, which has historically been limited to accredited investors and large funds.

Deal Structure and Regulatory Context

The $717 million price tag reflects Kiavi’s valuation as a niche player in the private credit space, though it remains significantly smaller than major fintech firms like Upstart or LendingClub. The transaction is subject to regulatory approvals, including reviews by the U.S. Department of Justice and the Federal Trade Commission, as per the Scotsman Guide. A source familiar with the deal noted that the merger could face scrutiny due to Figure’s growing influence in home equity lending, a market where it holds over 15% of the U.S. share, according to 2025 industry reports.

Figure’s CEO, David Sacks, emphasized the strategic alignment of the two companies during a press briefing on June 10. “Kiavi’s blockchain capabilities will enhance our ability to serve both retail and institutional investors,” he said. “This is about building a more efficient, transparent, and scalable lending ecosystem.” The company also highlighted plans to expand Kiavi’s blockchain tools to mortgage-backed securities, a move that could disrupt traditional securitization processes.

Technology Integration and Industry Implications

The integration of AI and blockchain in the deal highlights a broader trend in financial technology. AI algorithms, which Figure uses to assess borrower risk and set interest rates, will now be paired with Kiavi’s blockchain ledger, which provides immutable records of loan terms and payments. This combination could reduce fraud and improve auditability, according to a 2026 analysis by the MIT Sloan School of Management. “Blockchain adds a layer of trust, while AI accelerates decision-making,” said the report, which cited the Figure-Kiavi merger as a case study.

Industry observers note that the deal could accelerate the adoption of decentralized finance (DeFi) principles in traditional lending. Kiavi’s smart contracts, which automatically execute loan agreements based on predefined conditions, may eventually replace manual processes in private credit. However, regulatory challenges remain. The U.S. Securities and Exchange Commission (SEC) has yet to classify blockchain-based private loans as securities, leaving the legal framework for such transactions in flux.

Private credit specialists have mixed reactions to the acquisition. While some praise the potential for innovation, others caution against over-reliance on untested technologies. “This is a bold move, but blockchain’s scalability and security in high-volume lending environments are still unproven,” said a senior analyst at Credit Suisse, quoted in the Scotsman Guide. “The real test will be how smoothly the systems integrate