TL;DR:
- Mortgage lender Better integrates into the Sky ecosystem to access crypto capital via Framework Ventures.
- The use of tokenized capital will reduce funding costs by more than 100 basis points annually.
- Framework Ventures acquires a 10% stake in Better with a $45 million investment.
Better Home & Finance has formed a strategic alliance with Framework Ventures to integrate an innovative Sky stablecoin credit line of up to $500 million. Through this agreement, the Nasdaq-listed lender will become a designated “Star” within the Sky decentralized network.
The intermediary for this integration is Obex, a Sky-focused incubator managed by Framework and backed by massive crypto capital. Through this structure, Better will be able to diversify its capital base without increasing the risk profile of its traditional corporate balance sheet.
The move also includes a direct investment from Framework Ventures, which took a $45 million stake in the company. This capital injection reinforces confidence in the hybrid model that seeks to connect U.S. mortgages with decentralized finance (DeFi).
Rate Reduction and the Future of the Mortgage Market
Vishal Garg, CEO of Better, explained that by eliminating traditional financial intermediaries, they can pass savings directly to the final consumers. By lowering funding costs by 1%, the company expects to offer interest rates below 5%, while the rest of the industry remains above 6%.
Furthermore, the company plans to scale its monthly loan originations from $500 million to over $1 billion by 2026. This expansion is made possible by the operational efficiency provided by digital asset infrastructure in large-scale capital management.
In summary, this alliance represents a breakthrough in the convergence of the real estate sector and blockchain technology. By tokenizing a $12 trillion asset class, Better and Framework Ventures are redefining how homeownership is financed in the digital age.
