Framework Ventures Teams Up With Better to Pump $500 Million into DeFi Mortgage Tokens
February 24 2026 – Crypto‑focused venture firm Framework Ventures announced a strategic partnership with mortgage‑services company Better that will channel half a billion dollars of credit into the stablecoin ecosystem of Sky—the protocol that evolved from MakerDAO. The collaboration aims to launch a new class of mortgage‑backed tokens that can generate yield for investors while potentially lowering financing costs for homebuyers.
Deal mechanics
Better disclosed that Framework will provide $500 million in credit to Sky’s stablecoin platform, enabling the issuance of tokens directly linked to government‑backed conforming mortgages. The tokens, reported to be called Home Token, will first be offered exclusively to accredited investors. In parallel, Framework will acquire a 10 percent stake in Better, a position valued at roughly $45 million.
Vance Spencer, co‑founder of Framework Ventures, highlighted the strategic importance of the move: “Real‑world assets represent one of the most pivotal frontiers in decentralized finance, and government‑backed conforming mortgages are among the largest asset classes globally.”
Why mortgage tokenization now?
The partnership arrives amid a wave of tokenization activity across traditional finance. Large institutions such as BlackRock have begun experimenting with tokenized money‑market funds, signaling broader acceptance of blockchain‑based asset representations. By converting mortgage cash flows into programmable tokens, Better hopes to cut intermediaries, reduce operating expenses, and pass cheaper financing rates on to consumers.
Better’s founder and CEO, Vishal Garg, explained the motivation: “The promise of lower fees and streamlined processes could let us finance mortgages at a cost far below the current market, ultimately delivering cheaper loans to borrowers.” He added that while the initial issuance targets accredited investors, the company is already mapping a path to bring these tokens to a wider retail audience.
Market reaction
Better’s shares have been under pressure since a peak above $86 in October 2025. The stock closed at roughly $27 on Monday, down about 17 percent year‑to‑date, and fell nearly 6 percent in a single session following the announcement. The new capital infusion and equity stake by Framework may provide a catalyst for a turnaround, though analysts note that the success of the tokenized mortgage product will hinge on regulatory clarity and consumer adoption.
Analysis
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DeFi meets real‑world assets: By marrying a sizable credit line with Sky’s stablecoin infrastructure, the partnership could set a precedent for large‑scale, asset‑backed DeFi products. If the mortgage tokens prove liquid and generate reliable yields, they may attract institutional capital seeking exposure to housing markets without traditional complexities.
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Regulatory hurdles: Mortgage‑backed tokens will likely fall under securities regulations in multiple jurisdictions. Limiting initial sales to accredited investors mitigates some compliance risk, but a future retail rollout will require a robust legal framework.
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Impact on Better’s business model: If the tokenization mechanism delivers on Garg’s promise of reduced intermediation, Better could achieve a competitive edge in mortgage pricing. However, the company must balance innovation with the operational demands of managing both a traditional lending platform and a blockchain‑based token issuance pipeline.
- Framework’s stake: The $45 million equity purchase aligns Framework’s incentives with Better’s long‑term performance, suggesting the venture firm sees significant upside in the mortgage‑tokenization thesis.
Key takeaways
- $500 million credit line from Framework to Sky’s stablecoin ecosystem will finance the creation of mortgage‑backed tokens.
- Home Token will launch initially for accredited investors, with a roadmap toward retail availability.
- Framework acquires 10 percent of Better, underscoring confidence in the company’s pivot to crypto‑enabled finance.
- The initiative reflects a broader tokenization trend in traditional finance, highlighted by players such as BlackRock.
- Better’s stock remains volatile; the partnership could provide a catalyst but execution risk remains high.
- Success depends on regulatory approval, market liquidity for the tokens, and the ability to deliver lower mortgage costs to consumers.
As the line between conventional finance and decentralized ecosystems continues to blur, the Framework‑Better alliance will be watched closely for signs of whether large‑scale, real‑world asset tokenization can move beyond pilot projects to become a mainstream financing tool.
Source: https://cointelegraph.com/news/crypto-vc-framework-ventures-help-better-with-500m-defi-play?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
