Framework Ventures partners with mortgage company Better to facilitate a $500 million integration into the Sky (formerly MakerDAO) stablecoin ecosystem. Better plans to launch tokenized mortgages, initially for accredited investors, aiming to reduce costs and lower consumer mortgage rates.
Crypto venture firm Framework Ventures has partnered with mortgage services company Better to help launch a $500 million plan to integrate with the decentralized finance protocol Sky, formerly MakerDAO. The partnership will help Better provide credit to Sky’s stablecoin ecosystem, enabling the launch of tokens tied to mortgages that would generate yield.
Framework Ventures co-founder Vance Spencer stated 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.” The move aligns with broader tokenization interest from traditional finance firms like BlackRock.
The planned tokens, reportedly to be named “Home Token,” will initially be available only to accredited investors. Better founder and CEO Vishal Garg explained the company would first issue the tokens before “figuring out how do we get this in the hands of consumers,” though a launch timeline was not provided.
Framework Ventures also struck a deal to buy 10% of Better’s Nasdaq-listed stock, valued at approximately $45 million. Better’s share price has struggled recently, falling nearly 17% year-to-date and closing around $27 on Monday, down from a peak over $86 in late October.
Garg told Fortune that the crypto push targets lower fees and operating costs by removing intermediation layers. “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 added. The partnership was announced on Monday.
