Framework Ventures Backs $500M Mortgage Plan with Blockchain-Linked Tokens
Crypto venture firm Framework Ventures has partnered with Nasdaq-listed mortgage company Better to deploy $500 million in credit through the decentralized finance protocol Sky, formerly known as MakerDAO. This move is part of a larger effort by Better to provide credit to Sky's stablecoin ecosystem using tokens tied to mortgage assets that generate yield.
According to Vance Spencer, co-founder of Framework Ventures, government-backed conforming mortgages are one of the largest real-world asset classes globally. He views real-world assets as a key frontier in DeFi, with tokenization growing across traditional finance. BlackRock has explored tokenization for money market funds, and this trend is expected to continue.
The mortgage-linked tokens will initially be restricted to accredited investors, but Better plans to explore bringing them to retail consumers through a product called 'Home Token.' The company's CEO, Vishal Garg, aims to reduce fees and eliminate intermediation layers in the mortgage market by financing at a lower cost than competitors.
Better's partnership with Framework Ventures marks its most concrete step yet into the tokenization space. The company's shares have declined sharply since peaking above $86 in late October, but this deal represents a significant move towards integrating real-world assets at scale.