Crypto venture firm Framework Ventures has partnered with mortgage services company Better to initiate a $500 million integration with the decentralized finance protocol Skye (formerly MakerDAO). The initiative aims to provide $500 million in credit to Skye’s stablecoin ecosystem to issue mortgage-backed tokens capable of generating income. Framework Ventures co-founder Vince Spencer emphasized that incorporating real-world assets into DeFi is crucial, particularly government-backed mortgages, which represent one of the largest asset classes globally.
This development comes as traditional financial institutions express growing interest in tokenization, with firms like BlackRock considering tokenized money market funds. Initially, these tokens will be available only to accredited investors, but plans exist to expand access to the general public in the future. According to a Fortune report, Framework has also agreed to acquire a 10% stake in Better for approximately $45 million. Better’s founder and CEO Vishal Garg stated that the company is exploring ways to make tokens available to customers, though no specific launch date has been announced. These retail tokens will be known as “Home Tokens.”
Meanwhile, Better’s shares, listed on Nasdaq under the ticker BETR, have faced challenges in recent months. After reaching above $86 at the end of October, the stock experienced a significant decline, closing near $27 recently, marking an approximate 17% decrease over the year. Garg explained that the company’s entry into crypto aims to reduce fees and operating costs by eliminating several middlemen in mortgage financing, thereby offering consumers more affordable mortgages.
This plan could serve as a bridge between DeFi and traditional finance, boosting asset tokenization and enhancing transparency and convenience in financial services. However, given regulatory uncertainties and market volatility in this sector, investors are advised to exercise caution.
Source: binance
