| What to Know: – $500M Sky stablecoin credit line adds tokenized liquidity for conforming mortgages. – Framework invests ~$45M in Better; alignment supports designated Sky ecosystem ‘Star’. – Aims to cut funding costs 100+ bps, potentially lowering borrower mortgage rates. |
As reported by The Block (https://www.theblock.co/post/391019/better-partners-with-framework-ventures-on-500-million-sky-stablecoin-credit-plan-amid-mortgage-tokenization-push), Better and Framework Ventures established an up-to-$500 million Sky stablecoin credit facility to support conforming mortgage assets. Under the arrangement, Better will act as a designated “Star” in the Sky ecosystem, while Framework purchased roughly 10% of Better, about $45 million, to align incentives. The report also notes Better is targeting more than 100 basis points in annual funding-cost reduction by deploying tokenized capital. It frames the U.S. conforming mortgage market at about $12 trillion, underscoring the potential addressable scale if the model proves durable.
In practical terms, the facility is intended to introduce a new source of tokenized liquidity alongside warehouse lines and securitization. If execution and risk controls hold, added competition for mortgage funding could compress costs and, over time, influence borrower rates. The approach remains early and contingent on strict compliance, investor protections, and resilient structure design.
The credit line is structured around Sky stablecoin as the capital conduit, with Better positioned to originate conforming loans and match them to this tokenized source of funding. The goal is to demonstrate that onchain capital can support real-world mortgages at institutional scale while preserving underwriting standards. Better characterizes this as deploying “tokenized capital” to responsibly finance mortgage assets, with Framework’s equity stake reinforcing commercial alignment.
Key risks and considerations center on regulatory compliance, counterparty governance, custody, and convertibility between stablecoin capital and traditional mortgage cash flows. The model’s durability will hinge on how servicing, loss mitigation, and reporting integrate with existing mortgage market controls. Early wins would likely come from careful pilots, conservative limits, and transparent data to satisfy both capital providers and oversight bodies.
Against that backdrop, industry leaders have emphasized the potential but cautioned that impact will be gradual. “With this capital injection, we think Better will be able to rapidly scale origination and potentially lower mortgage rates for consumers in the long term,” said Vance Spencer, co-founder at Framework Ventures, as reported by Cointelegraph (https://cointelegraph.com/news/better-500m-stablecoin-mortgage-defi-deal?utm_source=openai). Any cost benefits will depend on sustained execution, market acceptance, and ongoing regulatory clarity.
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