Better Home & Finance Holding Company is stepping deeper into tokenized finance through a new strategic partnership with Framework Ventures that aims to unlock $500 million in credit by integrating Better into the Sky stablecoin ecosystem. The collaboration positions Better as the home finance “Star” within Sky’s expanding decentralized capital network, marking a significant intersection between traditional mortgage lending and decentralized finance infrastructure.
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Under the agreement, Better would integrate into the Sky ecosystem through Obex, a Sky-focused incubator administered by Framework Ventures and backed by a $2.5 billion capital commitment from Sky. Within the ecosystem, capital is allocated across sector-specific “Stars,” which deploy funds to generate yield and return earnings back into the broader network. By joining as a Star, Better would gain access to diversified tokenized warehouse funding while providing the ecosystem with exposure to U.S. conforming mortgages — one of the largest real-world asset classes in the country.
Framework Ventures Co-Founder Vance Spencer described the move as a mutually beneficial expansion of decentralized finance into real-world assets. Government-backed conforming mortgages represent more than $12 trillion in outstanding value in the United States alone, making them one of the most significant and historically stable asset classes globally. Spencer noted that Better’s Tinman AI platform, which has already originated over $110 billion in loans, demonstrated the operational capability required to bring institutional-scale mortgage assets into a tokenized capital framework.
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Better would maintain full responsibility for underwriting and loan origination, while the Sky-backed Star structure would serve as an alternative warehouse funding source. Similar to traditional warehouse lines, the arrangement would be secured by originated mortgage assets and structured in a way that does not increase Better’s balance sheet risk. The key difference lies in funding efficiency: access to tokenized capital markets could potentially reduce costs and allow savings to be passed along to borrowers over time.
Founder and CEO Vishal Garg framed the partnership as a turning point in housing finance. He emphasized that tokenization can introduce greater liquidity, efficiency, and global capital access to an asset class that has historically relied on traditional banking infrastructure. Better expects the integration to lower funding costs by more than 100 basis points annually for its mortgage and home equity products, potentially enabling rates below 5% in an environment where many lenders remain above 6%. At the same time, the structure aims to deliver competitive yields to token holders backed by conforming mortgage assets.
The timing aligns with broader growth in tokenized financial products. Tokenized U.S. Treasury funds have expanded rapidly in recent years, and major asset managers have begun piloting blockchain-based fund structures. Industry estimates suggest tokenized mutual funds, bonds, and exchange-traded notes could grow into a multi-trillion-dollar market by the end of the decade. Against that backdrop, both companies view residential mortgage finance as the next major real-world asset category to transition into tokenized infrastructure.
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If executed at scale, the partnership could represent one of the first institutional-grade deployments of tokenized capital into conforming U.S. mortgages. For Better, it offers a pathway to scale monthly originations from $500 million to more than $1 billion in 2026 while reducing capital intensity. For the Sky ecosystem, it introduces a differentiated, yield-generating real-world asset that bridges decentralized finance with mainstream housing finance.
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