Crypto VC Backing a $500M DeFi Play

Framework Ventures has forged a strategic partnership with mortgage technology company Better to advance a $500 million credit facility into Sky’s decentralized stablecoin ecosystem. The collaboration aims to unlock the tokenization of real-world assets, beginning with mortgage-backed instruments that could generate yields for holders within a DeFi framework. The move signals a broader push by traditional finance and crypto-native firms to bridge tangible assets with scalable blockchain protocols, a trend that has gathered momentum as tokenization efforts spread from money-market funds to more complex asset classes.

Key takeaways

• Framework Ventures will extend up to $500 million in credit to Sky’s stablecoin ecosystem, enabling the launch of mortgage-backed tokens tied to Better’s assets.
• The initiative envisions tokens that represent mortgages, initially offered to accredited investors, with a long-term plan to broaden access to retail participants.
• Better is pursuing a stake in its own stock through Framework, with a reported 10% acquisition valued around a $45 million equity stake, alongside the tokenization push.
• The project sits within a wider wave of tokenization in traditional finance, including BlackRock’s exploration of tokenized instruments for money-market funds.
• Better’s leadership frames the effort as a means to cut intermediation and reduce costs for consumers, potentially enabling cheaper mortgage financing over time.

Tickers mentioned: $BETR

Market context: The plan arrives amid rising institutional interest in tokenized real-world assets and growing experimentation with DeFi-native structures that can support asset-backed tokens. It aligns with a broader move by asset managers toward tokenization as a way to broaden liquidity and potentially lower financing costs in traditional markets.

Why it matters

The collaboration highlights a convergence between crypto-native protocols and traditional mortgage finance. By channeling a sizable $500 million credit line into Sky’s stablecoin system, the initiative seeks to create a pipeline for mortgage-backed tokens that can be minted and traded within a decentralized framework. If successful, the approach could demonstrate a viable pathway to connect real-world debt—specifically conforming, government-backed mortgages—with blockchain rails, a pairing that proponents say can enhance efficiency, transparency, and liquidity.

Better’s leadership has framed the move as a broad effort to trim layers of intermediation and reduce operating costs. Vishal Garg, founder and CEO of Better, has argued that tokenization could lower overall financing costs, which, in turn, could translate into cheaper mortgage terms for consumers. While the precise mechanics and rate implications remain to be seen, the emphasis on cost reduction reflects a recurring theme in real-world asset tokenization: the potential for blockchain-enabled processes to streamline origination, underwriting, and settlement without sacrificing regulatory safeguards or consumer protections.

The strategic angle extends beyond just lending costs. By taking a stake in Better and pursuing mortgage-backed tokens, Framework and Better are testing whether a hybrid model—combining on-chain settlement with traditional mortgage assets—can deliver consistent yields to token holders while maintaining compliance and risk management. The initiative also underscores the appetite among some crypto investors for assets that can offer a bridge between digital liquidity and the stability of real-world collateral. In this sense, the project resonates with a wider industry trend toward tokenized assets that aim to preserve credit quality while expanding access to investors who are comfortable with DeFi governance and transparency standards.

The broader tokenization theme has gained notable attention from institutional players. For example, major asset managers have shown interest in tokenized versions of money-market funds, a development that could signal a future where high-quality, asset-backed tokens play a more prominent role in diversified portfolios. The industry’s trajectory toward tokenized real-world assets (RWAs) has been punctuated by regulatory scrutiny and the need to establish clear redemption, custody, and compliance frameworks. Even as investors weigh opportunities in these tokenized products, the emphasis remains on ensuring that tokenization scales without compromising investor protections.

The market backdrop includes public disclosures around Better’s equity positioning with Framework. Fortune reported that Framework would purchase about 10% of Better’s stock, which is currently valued at roughly $45 million, and that the tokenized mortgages could be made available initially only to accredited investors. Garg indicated the tokens would be issued first, with efforts to determine how those assets could reach everyday consumers, but specific launch dates were not disclosed. Market observers will be watching not only for token economics and compliance paths but also for how these mortgage-backed tokens would perform within Sky’s ecosystem and how collateralization, liquidity, and risk management would be structured in practice.

From a pricing perspective, Better’s stock BETR has experienced a challenging period since peaking near the $86 level in October. It was trading around $27 as of last close, reflecting ongoing volatility in the stock’s performance and investor sentiment amid broader market fluctuations. This backdrop adds another layer of complexity to any tokenization plan tied to a public equity component, highlighting the delicate balance between on-chain innovation and traditional market dynamics.

The motivation for the program rests partly on the belief that tokenization can unlock new efficiencies and access. Garg’s remarks suggest a long-term view where mortgage-backed tokens could reduce cost pressure on lenders and borrowers alike by removing redundant steps in the origination and settlement processes. The promise hinges on rigorous risk controls, credible asset backing, and a framework for on-chain governance that preserves the integrity of the underlying mortgage assets.

As the industry watches, a number of fundamental questions remain: How will the mortgage-backed tokens be structured in terms of collateralization and payment streams? What governance mechanisms will oversee the Sky ecosystem to ensure reliability and security? What regulatory approvals or safe harbors will be necessary to allow token holders to participate economically in mortgage yields without running afoul of securities or commodities rules? While these are not uniquely defined yet, the collaboration between Framework and Better signals a concerted effort to address these issues in a convergent manner—blending the best practices of traditional credit markets with the transparency and programmability of DeFi.

What to watch next

• Official rollout details for the $500 million credit facility to Sky and the timeline for token issuance.
• Detailed tokenomics for the mortgage-backed tokens, including yield structures, collateral requirements, and redemption mechanics.
• Regulatory filings or statements clarifying compliance pathways for accredited-investor tokens and eventual consumer access.
• Subsequent investor communications from Better and Framework regarding the equity stake and governance rights tied to the token program.
• Updates on Sky’s protocol integration, including security audits, collateral-custody arrangements, and on-chain settlement protocols.

Sources & verification

• Better and Framework Ventures press release announcing the strategic partnership to deploy $500MM into Better via Sky’s stablecoin ecosystem (BusinessWire).
• Fortune coverage of Framework’s investment in Better and the proposed “Home Token” mortgage-backed tokens, including the 10% stock acquisition and accreditation restrictions.
• Cointelegraph reporting on BlackRock’s exploration of tokenization for money-market funds as part of the broader tokenization trend.
• Cointelegraph explainer on tokenization, outlining the mechanics and opportunities of tokenizing traditional assets.
• BETR stock price context from Google Finance showing recent trading levels in Better’s public market.

Market reaction and key details

The partnership between Framework Ventures and Better marks a notable step in the ongoing experimentation with tokenized real-world assets. If the mortgage-backed token concept proves viable, it could provide a scalable model for aligning mortgage originators with DeFi liquidity, potentially lowering financing costs for borrowers while offering a novel yield channel for token holders. The approach emphasizes real-world asset backing, robust risk controls, and a governance framework designed to coexist with traditional financial oversight. Investors should monitor how the tokenization framework adapts to regulatory developments, how capital is deployed to Sky, and how consumer-ready token products are designed, tested, and rolled out in the months ahead.

What it means for users and builders

For users, the initiative could eventually translate into accessible, tokenized exposure to mortgage-originated yields—an option that sits at the intersection of DeFi and mainstream finance. For builders, the Sky ecosystem represents a testbed for on-chain loan structures, asset-backed collateral, and transparent settlement processes that can scale across asset classes. The collaboration also signals ongoing interest from institutional players in tokenized RWAs, a trend that could help drive liquidity, standardization, and better risk management practices within DeFi.