AI-native Better leverages automation to access alternative on-chain mortgage capital.
Better and Framework Ventures agreed to a $500 million credit plan via Sky’s stablecoin ecosystem alongside a $45 million equity investment, as reported by The Block. The arrangement links on‑chain liquidity to traditional mortgage funding. It is a notable attempt to align DeFi capital with U.S. housing finance.
HousingWire reports the facility is intended to cut Better’s mortgage funding costs by about 100 basis points. If realized, that lift could influence pricing and capacity in a tight‑rate environment.
Better Home & Finance Holding Company (Nasdaq: BETR) positions itself as an AI‑native mortgage and home equity finance platform, as reported by Pulse2. The company’s scale and automation are central to tapping alternative funding channels.
Framework Ventures’ Vance Spencer has described government‑backed conforming mortgages as one of the largest real‑world asset classes globally, according to CoinMarketCap Academy. That context helps explain why Sky’s stablecoin ecosystem seeks exposure to mortgage cash flows, even as borrower savings will depend on pass‑through beyond funding costs.
Under the plan, Sky’s stablecoin protocol serves as the conduit for a credit facility that Better can draw against to support mortgage production. Company statements emphasize funding efficiency rather than changing credit standards, with underwriting and origination responsibility remaining with Better.
Leadership has framed the use of tokenized capital as a scale and cost initiative rather than a shift in credit risk. “Tokenized capital through the Sky ecosystem can responsibly support mortgage assets at institutional scale, lowering funding costs by over 100 basis points annually,” said Vishal Garg, CEO, Better Home & Finance.
Academic research indicates that many on‑chain real‑world asset tokens still face low liquidity and thin secondary markets, according to arXiv. Early deployments may therefore rely more on hold‑to‑maturity cash flows than frequent trading.
Norton Rose Fulbright notes that tokenized real‑estate exposures must satisfy existing U.S. frameworks, including potential securities classification, enforceability of collateral, and custody controls. Depending on structure, mortgage‑linked tokens could be treated as securities, shaping disclosures, investor eligibility, and distribution channels.
