“We
believe
tokenization
has
the
potential
to
unlock
efficiency
and
global
liquidity
in
housing
finance,
one
of
the
largest
asset
classes
in
the
United
States,”
Vishal
Garg,
founder
and
CEO
of
Better,
said
in
a
statement.
“We
will
be
the
first
conforming
mortgage
originator
to
deploy
tokenized
capital
to
responsibly
support
mortgage
assets
at
institutional
scale.”

Garg
said
the
company
aims
to
reduce
funding
costs
by
more
than
100
basis
points
annually
—
a
shift
that
could
translate
into

mortgage
rates
below
5%.
Better
also
plans
to
double
its
monthly

origination
volume
to
$1
billion
in
2026.

Rather
than
relying
on
traditional
bank

warehouse
lines
or
securitization
markets,
the
capital
will
flow
from
the
Sky
ecosystem
directly
to
Better.
The
structure
is
expected
to
function
similarly
to
warehouse
financing,
with
funding
secured
by
originated
mortgage
assets
and
without
altering
Better’s
balance
sheet
risk
profile. 

The
lender
will
continue
to
underwrite
and
originate
loans
with
yields
generated
from
those
assets
flowing
back
into
the
Sky
ecosystem.

Better
will
connect
to
Sky
through

Obex,
an
incubator
administered
by
Framework
Ventures
that
operates
under
a
$2.5
billion
capital
commitment
from
Sky.

“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,”
Vance
Spencer,
co-founder
of
Framework
Ventures,
said
in
a
statement.
“We
view
real-world
assets
as
one
of
the
most
important
frontiers
in
decentralized
finance,
and
government-backed
conforming
mortgages
are
one
of
the
largest
real-world
asset
classes
in
the
world,
comprising
over
$12
trillion
in
the
United
States
alone.”