Better Home & Finance Holding Company, an AI-native mortgage and home equity finance platform, and Framework Ventures, an SF-based venture capital firm with a background in decentralized finance, have announced a strategic partnership. The collaboration aims to provide $500 million in credit by integrating Better into the Sky stablecoin ecosystem, where Better will function as the home finance “Star.”
The Sky ecosystem is designed to allocate capital across various “Stars” in multiple sectors, which then deploy this capital to generate yield that is directed back into the ecosystem. Better’s integration will occur through Obex, a Sky-focused incubator administered by Framework Ventures, backed by a $2.5 billion commitment from Sky.
Vance Spencer, Co-Founder of Framework Ventures, stated his belief that Better’s integration could benefit all parties involved. He suggested that the capital injection would allow Better to scale origination rapidly and potentially lead to lower mortgage rates for consumers. Furthermore, he noted that Better’s role as a Star would provide the Sky stablecoin ecosystem with a distinct and powerful new source of yield. Spencer highlighted the significance of real-world assets in decentralized finance, citing government-backed conforming mortgages as a major asset class in the US, valued at over $12 trillion. He also acknowledged Better’s Tinman AI platform and its track record of originating more than $110 billion in loans.
Vishal Garg, Founder and CEO of Better, commented on the potential of tokenization to enhance efficiency and global liquidity within housing finance. He indicated that Better is positioned to be the first conforming mortgage originator to deploy tokenized capital at an institutional scale to support mortgage assets. This initiative, he explained, is projected to reduce funding costs for Better and its Tinman AI platform partners, along with their customers, by over 100 basis points annually. Garg forecasted that this could translate to potential interest rates below 5% for Better’s customers, contrasting with industry rates exceeding 6%. He also projected that this strategy would significantly lower Better’s capital requirements as it aims to increase originations from $500 million per month to over $1 billion per month by 2026, while offering token holders yields exceeding current stablecoin yields with a superior credit risk profile.
Better will maintain full responsibility for underwriting and loan origination. The Star arrangement is intended to offer an alternative source of warehouse funding, providing access to diversified capital on favorable terms to improve funding efficiency and transfer savings to customers. This structure will be secured by originated assets, similar to traditional warehouse funding, and is not expected to increase Better’s balance sheet risk.
The adoption of tokenized financial assets has seen accelerated growth across various markets. Recent data indicates tokenized US treasury funds grew 80% to $7.4 billion in 2025, according to a 2024 Financial Times report. McKinsey & Company estimated in 2025 that the market for tokenized mutual funds, bonds, and exchange-traded notes could grow to $2 trillion by 2030. Both companies anticipate that home finance will be the next significant asset class to benefit from the expansion of tokenization beyond Treasuries into other Real World Assets.
Better Home & Finance Holding Company, listed on NASDAQ under BETR, operates as an AI-native mortgage and home equity finance platform, having funded over $100 billion in loan volume. Its proprietary Tinman® AI platform facilitates quick rate options, pre-approvals, rate locking, and loan closings. The company also employs Betsy™, a voice-based AI loan assistant for continuous customer support. Better offers various mortgage products, including GSE-conforming, FHA, VA, and jumbo loans, serving customers across all 50 US states and the United Kingdom.
Framework Ventures, an SF-based venture capital firm, has a history of early investments in decentralized finance and blockchain protocols. In 2022, the firm raised $400 million for its third fund and has since expanded its focus to include areas such as AI, energy, stablecoins, and tokenization.
