Better Home & Finance Holding Company, the AI-native mortgage and home equity finance platform traded on Nasdaq under BETR, announced a strategic partnership with venture capital firm Framework Ventures to enable the deployment of $500 million in credit to Better through the Sky stablecoin ecosystem.
Under the agreement, Better will integrate into the Sky ecosystem as a home finance “Star,” a designation used by Sky to allocate capital across sector-specific entities that generate yield and return earnings back into the broader ecosystem. The partnership is designed to create a new source of on-chain yield for what the companies describe as the world’s third largest stablecoin, while providing Better with an alternative source of warehouse funding.
Better intends to integrate into Sky through Obex, a Sky-focused incubator administered by Framework Ventures and backed by a $2.5 billion commitment from Sky. As a Star, Better would deploy allocated capital into originated mortgage and home equity assets, generating yield for the ecosystem.
The structure is expected to function similarly to traditional warehouse funding, secured by originated assets and without increasing Better’s balance sheet risk profile. Better will retain full responsibility for underwriting and loan origination. The company said the additional funding source would diversify its capital base, improve funding efficiency, and potentially lower consumer borrowing costs over time.
Framework Ventures said it views real-world assets as a key frontier in decentralized finance, highlighting government-backed conforming mortgages as one of the largest asset classes globally, totaling more than $12 trillion in the United States. The firm cited Better’s Tinman AI platform and its track record of originating more than $110 billion in loans as factors in the partnership.
Better said tokenized capital could reduce funding costs by over 100 basis points annually through integration with the Sky ecosystem, potentially translating into mortgage rates below 5% for its customers in certain market conditions. The company also stated the initiative could lower its capital requirements as it scales originations from $500 million per month to more than $1 billion per month in 2026, while offering token holders yields above current stablecoin rewards with what it described as superior credit risk characteristics.
The announcement comes amid the accelerating adoption of tokenized financial assets. The companies cited data indicating tokenized U.S. Treasury funds grew 80% to $7.4 billion in 2025 and referenced industry estimates projecting the market for tokenized mutual funds, bonds, and exchange-traded notes could reach $2 trillion by 2030. They said home finance represents a significant next step in the evolution of tokenization beyond Treasuries into broader real-world assets.
KEY QUOTES:
“We believe that Better’s integration into the Sky ecosystem could be a win for all parties: with this capital injection, we think Better will be able to rapidly scale origination and potentially lower mortgage rates for consumers in the long term. At the same time, bringing Better on as a Star would give the Sky stablecoin ecosystem a powerful and differentiated new source of yield. We view real-world assets as one of the most important frontiers in decentralized finance, and government-backed conforming mortgages are one of the largest real world asset classes in the world, comprising over $12 trillion in the United States alone. We were impressed by Better’s Tinman AI platform and its capability to originate mortgage and home equity assets, along with the company’s broader track record of originating more than $110 billion in loans.”
Vance Spencer, Co-Founder of Framework Ventures
“We believe tokenization has the potential to unlock efficiency and global liquidity in housing finance, one of the largest asset classes in the United States. We will be the first conforming mortgage originator to deploy tokenized capital to responsibly support mortgage assets at institutional scale, and in doing so lower funding costs for both Better and its Tinman AI platform partners, and their consumers by over 100 bps per year by integrating into the Sky Ecosystem. The full realization of our plan will translate into potentially sub 5% interest rates for Better’s customers when the rest of the industry is charging over 6%, in addition to significantly lowering the capital requirements for Better to finance its future growth plans as it scales from $500 mm per month to over $1 billion per month in originations in 2026. All this while providing token holders with yields well above current Stablecoin yield or rewards with superior credit risk. We’re just getting started.”
Vishal Garg, Founder and CEO of Better
