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Figure Technology Solutions just wrote a $717 million check to acquire Kiavi, the AI-powered non-bank lender that has quietly become one of the largest originators of residential real estate investor loans in the country.
The deal merges Figure’s blockchain infrastructure and securitization expertise with Kiavi’s massive origination engine. Figure operates on the Provenance Blockchain, which it uses to bring efficiency to loan origination, servicing, and securitization.
What Kiavi brings to the table
Kiavi originated a record $7.8 billion in loans across 2025, specializing in fix-and-flip loans and DSCR (debt service coverage ratio) products for residential real estate investors — the kind of lending that traditional banks largely avoid.
In February 2026, Kiavi closed a $350 million rated RTL securitization that was 5x oversubscribed. That single transaction expanded Kiavi’s funding capacity by up to $1.2 billion.
Kiavi had no prior institutional acquisitions on its record, remaining a privately held, VC-funded company.
Figure’s blockchain play in traditional lending
In February 2025, Figure formed a joint venture with Sixth Street aimed at bringing $2 billion in liquidity to the non-agency mortgage market. In July 2025, Figure merged with its sibling entity Figure Markets, combining its consumer lending business with a digital asset exchange.
Figure also operates in the crypto-native world, offering products like $YLDS, a yield-bearing stablecoin. No cryptocurrency tokens appear to be directly involved in the Kiavi acquisition — this is a traditional M&A transaction built around lending assets and operational synergies, not a token swap or crypto-funded buyout.
Why this deal matters for investors
Kiavi’s fix-and-flip and DSCR products sit in the non-QM universe — mortgages that don’t meet the “qualified mortgage” standards set by regulators. By acquiring Kiavi, Figure gains immediate access to a proven, high-volume origination platform in a sector where demand consistently outpaces supply.
The $717 million price tag implies the market is pricing Kiavi at roughly a tenth of its annual origination volume. The $1.2 billion in additional funding capacity that Kiavi’s recent securitization unlocked means more loans, more securitization volume, and more fee income — assuming credit quality holds up.
Fix-and-flip loans are inherently tied to local housing market conditions. When home prices are rising and renovation margins are healthy, the business prints money. When markets cool or construction costs spike, default rates can climb quickly. Kiavi’s AI-driven underwriting is designed to manage that risk.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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