Better Partners With Framework Ventures to Launch $500 Million Mortgage-Backed Token Plan Using Sky Protocol in the United States

Mortgage services company Better is entering the decentralized finance world with a major new plan.

On Monday, the firm announced a partnership with crypto venture firm Framework Ventures to roll out a $500 million initiative connected to the Sky protocol, formerly known as MakerDAO.

The collaboration will allow Better to issue tokens tied to mortgages, generating yield within Sky’s stablecoin ecosystem.

According to Better, the plan represents a convergence of traditional finance and crypto innovation, as the mortgage market becomes one of DeFi’s newest frontiers.

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Real-World Assets Meet Decentralized Finance

Vance Spencer, co-founder of Framework Ventures, highlighted the significance of tokenizing mortgages.

“Real-world assets are one of the most important frontiers in decentralized finance, and government-backed conforming mortgages are one of the largest real-world asset classes in the world,” he said.

This push reflects a broader trend in finance.

Big players such as BlackRock have already begun experimenting with tokenization for money market funds, signaling growing institutional interest in merging traditional assets with blockchain-based systems.

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Tokens Start With Accredited Investors

According to Fortune, Framework Ventures also agreed to acquire 10% of Better’s stock, currently valued at roughly $45 million.

The initial mortgage-backed tokens will be offered only to accredited investors, though Better CEO Vishal Garg hinted at a future rollout for everyday consumers.

The retail-focused tokens, reportedly named “Home Token,” are part of a strategy to eventually make homeownership more accessible through blockchain technology.

Garg emphasized that tokenization could significantly reduce costs.

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Aiming to Lower Mortgage Fees

Better’s push into crypto isn’t just about innovation—it’s about economics.

Garg told Fortune that eliminating layers of intermediation could dramatically reduce operating costs.

“If we’re able to finance at a much lower cost than anyone else in the mortgage market, we’re going to be able to offer consumers a much cheaper mortgage than anybody else in the market,” he said.

The move comes at a challenging time for Better’s stock.

After peaking above $86 in late October, shares have tumbled to around $27, down nearly 17% so far this year, with Monday’s trading alone seeing a nearly 6% drop.

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The Bigger Picture for DeFi and Mortgages

Better’s plan reflects a growing interest in bridging real estate and decentralized finance.

By tokenizing mortgages, the company could create new liquidity for lenders and offer investors yield on traditionally low-yield assets.

Experts see this as part of a long-term trend where traditional finance taps into blockchain solutions to innovate products and lower costs.

At the same time, regulators and market watchers will be paying close attention.

Tokens tied to mortgages introduce novel risks around compliance, valuation, and investor protections, especially as Better moves from accredited investors to retail markets.

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What’s Next?

The immediate focus will be on launching the mortgage-backed “Home Token” and exploring how to bring it to broader consumers.

Investors will also be watching Better’s stock performance and the success of the partnership with Framework Ventures.

Regulators could weigh in, particularly if tokenized mortgages become accessible to retail investors, potentially shaping the future of how DeFi interacts with traditional home lending.

Meanwhile, Better’s move could inspire other mortgage companies to explore tokenization, signaling a wider shift in the industry toward crypto integration.

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Summary

Better is partnering with Framework Ventures to launch a $500 million plan integrating mortgage-backed tokens with the Sky protocol.

Initially targeting accredited investors, the initiative aims to lower costs and generate yield, with plans to eventually expand to retail.

The partnership coincides with challenges in Better’s stock performance and reflects a broader trend of traditional finance exploring blockchain solutions for real-world assets.