Synopsis: Framework Ventures will acquire a 10% stake in Better.com as part of a broader push to bring real-world mortgages onto blockchain rails through tokenisation.
Framework Ventures Backs Better.com’s DeFi Expansion
Crypto venture capital firm Framework Ventures has agreed to purchase a 10% stake in digital mortgage lender Better.com for approximately $45 million. The investment is aimed at supporting Better.com’s entry into decentralised finance (DeFi) and the tokenisation of real-world mortgage assets.
The partnership marks a notable attempt to bridge traditional mortgage lending with blockchain-based financial infrastructure, allowing real-world loans to be represented as on-chain assets.
Tokenised Mortgages Planned
Better.com intends to issue blockchain-based tokens backed by up to $500 million worth of mortgages and related loans. Holders of these tokens would receive returns derived from the underlying mortgage payments, effectively giving investors exposure to real-world credit cash flows through digital assets.
Initially, the product will be limited to accredited investors, reflecting regulatory constraints around securities and structured financial products. While the company has indicated long-term plans to expand access to retail users, details such as the launch timeline and final product name remain undecided. Earlier reports suggested the retail version could be called “Home Token,” though CEO Vishal Garg has said the branding and rollout strategy are still under development.
Strategic Rationale: Cutting Costs and Intermediaries
Better.com, which positions itself as a digital-first mortgage lender using automation and AI-driven underwriting, sees tokenisation as a way to streamline the mortgage value chain. Garg has argued that traditional mortgage financing involves multiple intermediaries that add cost and slow processing times.
By moving loan funding, servicing exposure, and investor participation onto blockchain infrastructure, the company aims to reduce friction, lower financing costs, and accelerate capital flows between borrowers and investors.
Market Context and Corporate Pressures
The DeFi pivot comes as Better.com continues to recover from a difficult public market debut. The company initially targeted a $7.7 billion valuation in 2021 but ultimately went public in 2023, when its shares fell sharply and lost more than 90% of their value on the first trading day. Its market capitalisation now stands at roughly $450 million, highlighting the pressure to identify new growth avenues.
Tokenisation is being positioned internally as both a product innovation and a potential funding channel that could diversify the company’s capital base.
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Integration With Stablecoin and RWA Infrastructure
As part of the initiative, Better.com is working with Sky, a DeFi platform focused on real-world assets (RWAs) that support stablecoin-based liquidity. Stablecoins, which are designed to maintain a stable value relative to fiat currencies, are expected to serve as the primary settlement layer for the tokenised mortgage products.
Framework Ventures is an existing backer of Sky, whose broader ecosystem reportedly connects to around $18 billion in capital. Framework co-founder Vance Spencer has framed the Better.com investment as a step toward linking publicly traded companies, real-world credit markets, and crypto-native financial rails.
Tokenisation Trend Gains Momentum
Better.com’s move reflects a wider trend among both crypto-native and traditional financial institutions exploring tokenised real-world assets. Firms such as BlackRock and Fidelity have begun experimenting with blockchain-based representations of traditional instruments, particularly in money market funds and fixed-income products.
Advocates argue that tokenisation can improve market efficiency, enhance transparency, and expand investor access, although regulatory, liquidity, and infrastructure challenges remain.
Bridging TradFi and DeFi
The deal underscores the growing convergence between traditional finance and crypto capital markets. For Better.com, tokenised mortgages offer a potential path to lower funding costs and attract new investor segments. For Framework Ventures and the broader DeFi ecosystem, the initiative represents another attempt to bring yield-bearing real-world assets on-chain and anchor stablecoin liquidity in tangible cash flows.
Written by Parvati Anilkumar
