Better.com Secures $45 Million Framework Ventures Investment, Plans $500 Million Mortgage Tokenization

Better Home & Finance Holding Company (NASDAQ: BETR) announced on February 23, 2026, a strategic partnership with Framework Ventures involving a $45 million equity investment for a 10% stake, alongside plans to issue $500 million in tokenized mortgage assets through integration with the Sky decentralized finance ecosystem.

The mortgage originator intends to launch a token backed by conforming mortgages and home equity loans, initially available to accredited investors with potential future retail distribution through a proposed “Home Token”.

Strategic Partnership Structure

The agreement between Better.com and Framework Ventures comprises two primary components: an equity investment and a credit facility arrangement through Sky’s stablecoin ecosystem.

Framework Ventures has agreed to purchase a 10% equity stake in Better.com valued at approximately $45 million based on current market prices. Better.com currently holds a market capitalization of approximately $450 million as of the announcement date.

The partnership also includes a proposed $500 million credit facility through Better’s integration into the Sky ecosystem as a “Star”—entities that deploy capital to generate yield and direct earnings back to Sky. This integration would occur through Obex, a Sky-focused incubator administered by Framework Ventures with a $2.5 billion capital commitment from Sky.

Better.com would retain full responsibility for underwriting and loan origination activities. The structure is designed as an alternative source of warehouse funding secured by originated assets without increasing Better’s balance sheet risk profile, analogous to traditional warehouse funding arrangements.

Mortgage Tokenization Framework

The proposed tokenization initiative would represent the first deployment of tokenized capital by a conforming mortgage originator to support mortgage assets at institutional scale, according to company statements.

The planned tokens, backed by approximately $500 million in mortgages and other loans, would grant yield to holders derived from the underlying mortgage assets. Initial availability would be restricted to accredited investors under applicable securities regulations, with potential expansion to retail participants under consideration.

Vishal Garg, founder and CEO of Better.com, indicated the company is evaluating distribution mechanisms for consumer-facing token access but declined to specify launch timelines or token nomenclature. A person familiar with the matter identified “Home Token” as a potential name for a retail-focused cryptocurrency product.

The tokenization architecture leverages Sky’s existing DeFi infrastructure, which maintains approximately $18 billion in ecosystem capital as of the announcement date. Sky utilizes real-world assets including mortgages and other financial products to back its stablecoin ecosystem.

Strategic Rationale and Cost Reduction Objectives

Better.com’s pivot toward tokenization occurs against a backdrop of public market challenges since the company’s initial public offering. The mortgage issuer, which planned a 2021 public listing at a $7.7 billion valuation, ultimately went public in 2023 with shares declining more than 90 percent on the first trading day.

Garg articulated the efficiency rationale for mortgage tokenization, citing multiple layers of intermediation that blockchain-based structures could eliminate. “If we’re able to finance at a much lower cost than anyone else in the mortgage market, we’re going to be able to offer consumers a much cheaper mortgage than anybody else in the market,” Garg stated.

The company projects that full implementation of its tokenization strategy could reduce funding costs by over 100 basis points annually, potentially enabling customer interest rates below 5 percent when industry averages exceed 6 percent. Better.com also anticipates scaling monthly originations from $500 million to over $1 billion during 2026 through improved funding efficiency.

Vance Spencer, co-founder of Framework Ventures, characterized the transaction as “bridging the crypto coin-denominated universe to the public equities universe, with a substrate of stablecoins.” He identified real-world assets as “one of the most important frontiers in decentralized finance,” noting that government-backed conforming mortgages represent a $12 trillion asset class in the United States.

Technology Infrastructure and AI Integration

Better.com’s tokenization initiative builds upon its existing technology infrastructure, including the Tinman AI platform for mortgage and home equity asset evaluation. The company has originated over $110 billion in loans to date and brands itself as a digital-first housing finance provider utilizing artificial intelligence for homeowner assessment.

The company positions itself as an AI-native mortgage and home equity finance provider, with Tinman AI serving as the underwriting engine for originated assets that would back the proposed tokenized securities.

Market Context and Industry Precedent

Better.com’s entry into asset tokenization follows increasing institutional adoption of blockchain-based financial products. Tokenized US Treasury funds grew 80 percent to $7.4 billion in 2025, with asset managers including BlackRock piloting tokenized products. McKinsey & Company estimates the market for tokenized mutual funds, bonds, and exchange-traded notes could reach $2 trillion by 2030.

Financial institutions including BlackRock and Fidelity have issued money-market funds on public blockchains, demonstrating growing acceptance of tokenized real-world assets among traditional financial market participants.

Framework Ventures maintains a significant position in the Sky ecosystem as one of its largest backers, providing the venture firm with alignment between its Better.com investment and its broader DeFi portfolio strategy.

Regulatory and Compliance Considerations

The tokenized mortgage initiative operates within existing securities regulations governing accredited investor offerings. Better.com has not indicated whether it will seek regulatory approval for retail distribution channels or what specific exemptions it may rely upon for token issuance.

The company’s retention of full underwriting responsibility maintains traditional lending standards while the funding mechanism utilizes blockchain infrastructure, potentially addressing regulatory concerns regarding asset quality and investor protection.

Frequently Asked Questions

What is the structure of the Framework Ventures investment in Better.com?

Framework Ventures has agreed to purchase a 10% equity stake in Better.com valued at approximately $45 million based on current market prices. The partnership also includes a proposed $500 million credit facility through Better’s integration into the Sky ecosystem as a “Star,” with deployment occurring through Obex, a Sky-focused incubator administered by Framework Ventures backed by a $2.5 billion capital commitment from Sky.

How will Better.com’s mortgage tokenization work?

Better.com plans to issue tokens backed by $500 million in conforming mortgages and home equity loans that would grant yield to holders derived from the underlying mortgage assets. The tokens would initially be available only to accredited investors, with potential future retail distribution through a proposed “Home Token.” Better retains full underwriting responsibility, and the structure is secured by originated assets without increasing the company’s balance sheet risk profile.

What cost savings does Better.com project from tokenization?

Better.com projects that full implementation of its tokenization strategy could reduce funding costs by over 100 basis points annually. The company estimates this efficiency could enable customer interest rates below 5 percent when industry averages exceed 6 percent, while supporting scaling of monthly originations from $500 million to over $1 billion during 2026.