Framework Ventures Partners with Better for $500 Million Decentralized Finance Initiative

Framework Ventures has joined forces with mortgage services firm Better to implement a bold $500 million strategy aimed at marrying traditional mortgage services with decentralized finance via the Sky protocol, previously known as MakerDAO.

On Monday, Better revealed that Framework Ventures would aid in providing $500 million in credit to Sky’s stablecoin framework, facilitating the issuance of tokens linked to mortgages that yield returns.

Vance Spencer, co-founder of Framework Ventures, highlighted that integrating real-world assets into decentralized finance represents a significant frontier, noting the enormity of government-backed, conforming mortgages as a substantial asset category globally.

This initiative emerges amidst rising interest in tokenization among traditional financial institutions, with entities such as BlackRock exploring opportunities in tokenization for money market assets.

Tokens available only for accredited investors, with future plans to expand

According to a report from Fortune, Framework Ventures has finalized a deal to acquire a 10% stake in Better valued at approximately $45 million, with initial token offerings intended exclusively for accredited investors.

Vishal Garg, founder and CEO of Better, expressed intentions to distribute these tokens, the launch timeline remains unspecified. Insider sources inform that these retail-oriented tokens may be branded as “Home Token.”

This collaboration coincides with challenging times for Better, which saw its shares decline significantly after peaking at over $86 last October, now ending the previous session around $27, down nearly 17% this year.

Better’s Stock Decline Better ended trading on Monday down nearly 6%, adding to its losses since October. Source: Google Finance.

Garg also indicated that embracing cryptocurrency could significantly reduce operational fees, promising a more affordable mortgage for consumers by eliminating multiple layers of intermediation.

Conclusion

Through this strategic partnership, Framework Ventures and Better are poised to redefine mortgage processes via decentralized finance. As the landscape rapidly transforms, the implications of their venture could set new standards in both the crypto and mortgage industries.