Better Taps Tokenized Funding To Mortgage Originations

Better Home & Finance Holding Company, the parent of Better.com, has struck a deal with crypto-focused venture capital firm Framework Ventures to unlock up to $500 million in credit by integrating the lender into the Sky stablecoin ecosystem.

The transaction creates a bridge between decentralized finance (DeFi) and traditional housing finance, signaling that crypto-native capital is beginning to flow into the U.S. conforming mortgage market. If successful, the structure could offer lenders an alternative funding channel and potentially lower capital costs. Framework is also buying about 10% of the lender’s stock, currently priced at $45 million. 

“We believe tokenization has the potential to unlock efficiency and global liquidity in housing finance, one of the largest asset classes in the United States,” Vishal Garg, founder and CEO of Better, said in a statement. “We will be the first conforming mortgage originator to deploy tokenized capital to responsibly support mortgage assets at institutional scale.”

Garg said the company aims to reduce funding costs by more than 100 basis points annually — a shift that could translate into mortgage rates below 5%. Better also plans to double its monthly origination volume to $1 billion in 2026.

Rather than relying on traditional bank warehouse lines or securitization markets, the capital will flow from the Sky ecosystem directly to Better. The structure is expected to function similarly to warehouse financing, with funding secured by originated mortgage assets and without altering Better’s balance sheet risk profile. 

The lender will continue to underwrite and originate loans with yields generated from those assets flowing back into the Sky ecosystem.

Better will connect to Sky through Obex, an incubator administered by Framework Ventures that operates under a $2.5 billion capital commitment from Sky.

“With this capital injection, we think Better will be able to rapidly scale origination and potentially lower mortgage rates for consumers in the long term,” Vance Spencer, co-founder of Framework Ventures, said in a statement. “We view real-world assets as 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, comprising over $12 trillion in the United States alone.”