Better, Framework Ventures reach $500M stablecoin mortgage financing deal

Mortgage lender Better has partnered with crypto venture firm Framework Ventures to secure up to $500 million in financing through the Sky stablecoin ecosystem, in a deal that connects traditional home lending with decentralized finance infrastructure.

Better, which originates mortgages for homebuyers, will access the credit through Sky, a blockchain-based system with roots in MakerDAO, the companies announced Tuesday. Within the ecosystem, Better will operate as a designated capital recipient, referred to as a “Star.”

The arrangement aims to channel real-world mortgage activity into decentralized finance (DeFi) via stablecoins. Better will continue to handle underwriting and loan origination.

If successful, the structure could provide an additional funding source outside traditional capital markets, though such integrations between regulated mortgage businesses and blockchain systems remain relatively new.

“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,” said Framework Ventures co-founder Vance Spencer.

Source: Better Mortgage

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Tokenization moves into mortgage funding

By linking mortgage lending to a blockchain-based capital system, the partnership between Better and Framework Ventures introduces tokenization opportunities at the loan-funding level.

The Sky ecosystem uses crypto-native collateral to issue stablecoins. Under the arrangement, capital raised through that system will be directed toward Better’s mortgage originations. In effect, real-world home loans become part of the asset base supporting liquidity within a blockchain-linked structure.

The capital is generated within a blockchain-based framework but deployed into conventional home lending. That represents a form of real-world asset (RWA) tokenization, even though the underlying mortgages are not themselves being minted as tokens or traded on-chain.

“We will be the first conforming mortgage originator to deploy tokenized capital to responsibly support mortgage assets at institutional scale,” said Vishal Garg, Better’s founder and CEO.

The deal comes as traditional housing finance institutions increasingly examine how digital assets fit into existing frameworks. Pennsylvania-based lender Newrez recently said it plans to consider certain cryptocurrency holdings in mortgage underwriting. 

Last year, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to develop proposals for recognizing digital assets in loan applications, signaling growing regulatory engagement with the sector. Government-backed conforming mortgages comprise more than $12 trillion in the United States alone. In most US counties, the conforming loan limit for a single-family home in 2026 is $832,750, an increase of $26,250 from 2025 limits, according to Experian.

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