$500M Framework Ventures-Better Partnership Brings Stablecoin Capital to Mortgage Lending
Framework Ventures and Better forge groundbreaking agreement directing cryptocurrency liquidity toward residential mortgages, exploring blockchain infrastructure's potential to support conventional lending markets on an institutional level.
In a collaboration bridging conventional housing finance with decentralized finance frameworks, mortgage originator Better has joined forces with cryptocurrency investment firm Framework Ventures to obtain financing of up to $500 million via the Sky stablecoin platform, the companies revealed Tuesday.
The financing will flow through Sky, a decentralized blockchain platform that evolved from MakerDAO, providing Better with access to capital for its residential mortgage lending operations. Under the agreement's terms, Better assumes the role of a "Star," which designates it as an authorized capital recipient within Sky's ecosystem.
This partnership represents an effort to integrate authentic mortgage lending operations into the decentralized finance (DeFi) landscape using stablecoin infrastructure. Better will maintain its core functions of loan underwriting and mortgage origination throughout the process.
Should the initiative prove effective, it may establish an alternative funding channel independent of conventional capital market sources, although partnerships connecting regulated mortgage operations with blockchain platforms are still in early stages of development.
"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, Framework Ventures co-founder
Tokenization moves into mortgage funding
Through the integration of mortgage origination with blockchain-based capital infrastructure, the collaboration between Framework Ventures and Better creates new pathways for tokenization at the foundational loan-funding stage.
Within the Sky ecosystem, stablecoins are issued against cryptocurrency-native collateral. Through this agreement, capital generated via that blockchain system will flow directly into Better's mortgage origination activities. Effectively, conventional residential loans become incorporated into the underlying asset structure that backs liquidity within this blockchain-connected framework.
While the funding originates within blockchain infrastructure, it ultimately flows into traditional residential lending operations. This configuration exemplifies a form of real-world asset (RWA) tokenization, despite the fact that individual mortgages aren't being converted into tokens or exchanged through on-chain mechanisms.
"We will be the first conforming mortgage originator to deploy tokenized capital to responsibly support mortgage assets at institutional scale,"
Vishal Garg, Better's founder and CEO
This agreement emerges amid growing interest from conventional housing finance organizations exploring how blockchain-based assets integrate with established operational structures. Mortgage provider Newrez, headquartered in Pennsylvania, recently announced intentions to evaluate specific cryptocurrency holdings as part of its mortgage underwriting assessment process.
During the previous year, the Federal Housing Finance Agency issued directives to Fannie Mae and Freddie Mac requesting the development of frameworks for incorporating digital assets into mortgage application evaluations, reflecting increased regulatory attention toward this emerging sector. Conforming mortgages backed by government entities represent over $12 trillion throughout the United States. Across the majority of US counties, the conforming loan ceiling for single-family residences in 2026 stands at $832,750, representing a $26,250 increase compared to 2025 limits, based on data from Experian.