Framework Ventures, a crypto investment firm, has teamed up with Better Home & Finance, a top AI-native mortgage company, to put $500 million in credit into the Sky stablecoin ecosystem. The agreement, announced recently, makes Better a crucial “Star” participant in Sky, which was formerly known as MakerDAO.
It will tokenize real estate mortgages and make assets that earn interest on-chain. This is a big step in bringing together traditional finance (TradFi) and decentralised finance (DeFi). It focuses on one of the biggest real-world asset (RWA) classes: U.S. conforming mortgages.
Information About the $500 Million Credit Deployment
Framework Ventures will help Better get up to $500 million in credit from Sky’s ecosystem. This money will help Better originate new mortgages and convert some of these assets into tokens for use in DeFi.
Better will offer tokens backed by its mortgage loans. Sky users should be able to make money with these tokens through structured credit processes. This will broaden Sky’s collateral base beyond just crypto-native assets. Obex is a Framework-managed incubator that helps with the integration. Sky has promised to put up to $2.5 billion into ideas that will make money.
Equity Investment and Strategic Alignment
Framework Ventures is investing $45 million in Better as part of the acquisition, giving it a 10% ownership stake in the company. This puts Framework in a good position to help Better expand in the field of tokenized home credit.
Better wants to be the first mortgage lender to follow the rules to use tokenized capital on a large scale. By cutting out middlemen, the agreement is expected to lower Better’s, its AI platform partners’ (like Tinman), and end consumers’ funding expenses by more than 100 basis points per year.
Why This Is Important for DeFi and RWAs
Sky, one of the largest decentralised stablecoin platforms with USDS as its main asset, has been actively moving into RWAs to find new ways to generate revenue. Mortgages backed by the government are safer and more reliable than crypto assets, which can change quickly.
Vance Spencer, one of the founders of Framework, said it was important to note that real-world assets like conforming mortgages represent a huge opportunity in DeFi because they are large and reliable.
This project builds on a broader trend in which DeFi protocols seek ways to connect with TradFi to achieve stable returns. Tokenization lowers costs, increases market liquidity, and lets people from all around the world participate in mortgage markets on-chain.
What This Means for Crypto Users
For people who are already familiar with Sky, this adds another RWA-backed income source, possibly through stablecoin savings or lending modules. New users should know that RWAs provide DeFi access to regulated assets, but they also carry risks, including fluctuations in interest rates, regulatory changes, and smart contract bugs.
The agreement shows that more institutions are interested in using blockchain for real estate finance. This might make it easier for regular borrowers to get loans and give DeFi participants a wider range of real-world returns. As tokenization grows, projects like these could change how people around the world buy and sell mortgages.
