Last updated on March 5th, 2026 at 08:13 pm
Mortgage lender Better is stepping deeper into crypto, teaming up with venture firm Framework Ventures on a $500 million plan to connect traditional home loans with decentralized finance through Sky.
The initiative will channel up to $500 million in credit into Sky’s stablecoin ecosystem, paving the way for mortgage-backed tokens designed to generate yield. The move positions U.S. government-backed conforming mortgages, one of the world’s largest asset classes, as the next major bridge between Wall Street and DeFi.
Mortgage meets DeFi: “There are so many different layers of intermediation that we’re going to be able to take out,” said Vishal Garg (@vishal_better), CEO and Founder of Better. “And if we’re able to finance at much lower cost than anyone else in the mortgage market, we’re going…
— Better Mortgage (@tinmanAI) February 23, 2026
Framework co-founder Vance Spencer described real-world assets as one of decentralized finance’s most important frontiers, arguing that bringing mortgages onchain could unlock massive liquidity and efficiency gains.
Mortgage-backed tokens start with accredited investors
According to Fortune, Framework will also acquire roughly 10% of Better’s equity, a stake currently valued at about $45 million. The first wave of tokens will reportedly be offered exclusively to accredited investors, with broader retail access planned later.
Better founder and CEO Vishal Garg said the company intends to issue the tokens before determining how to expand distribution to everyday consumers. Retail-focused products may carry the name “Home Token,” though a formal launch date has not been disclosed.
The strategy reflects a growing appetite for tokenization across traditional finance. Asset management giant BlackRock, for example, has already explored tokenized money market funds, underscoring rising institutional confidence in blockchain-based financial rails.
BETR stock slumps as Garg bets on lower-cost mortgages
The crypto pivot comes at a delicate time for Better. Shares of Better, which trades on the Nasdaq under the ticker BETR, have fallen sharply after peaking above $86 in late October. The stock closed Monday near $27, down nearly 17% year to date.
Garg framed the DeFi integration as a cost-cutting strategy. By stripping out layers of financial intermediaries, he argues, Better could reduce financing costs and pass savings on to borrowers.
“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,”
Garg said.
Meanwhile, STBL announced a strategic investment from OKX Ventures alongside a partnership with Hamilton Lane and Securitize to launch what it describes as the first Ecosystem-Specific Stablecoin on X Layer.
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