Crypto: Better, Framework Ventures Reach $500m Stablecoin Mortgage...
The deal channels crypto liquidity into US home loans, testing whether blockchain-based capital can fund traditional mortgage markets at scale.
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.
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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.
Source: CoinTelegraph
