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Framework Ventures to Help Better With DeFi Play


Cryptocurrency venture firm Framework Ventures has partnered with mortgage services company Better to help it launch a $500 million plan to integrate with decentralized finance protocol Sky, formerly known as MakerDAO.

Peter Peter said on Monday that the Framework would help it extend $500 million in credit to Sky’s stablecoin system, enabling it to launch mortgage-linked tokens that would generate a return.

Real-world assets are “one of the most important frontiers in decentralized finance, and government-backed conformal mortgages are one of the largest real-world asset classes in the world,” said Vance Spencer, co-founder of Framework Ventures.

The plan comes amid broader interest in tokenization from traditional finance companies, with companies such as BlackRock engaging in tokenization for money market funds.

Tokens for accredited investors only, but will expand

Fortune reported on Monday that Framework also struck a deal to buy 10% of Better shares, currently valued at about $45 million, and that the planned tokens would initially be available only to accredited investors.

Better’s founder and CEO, Vishal Garg, said he would release the tokens and then “figure out how we can get this into the hands of consumers,” but did not say when the tokens would be launched.

The retail-focused token will be called the “Home Token,” Fortune reported, citing a person familiar with the plans.

It comes as shares in Nasdaq-listed Better (BETR) are struggling after reaching a peak of over $86 in late October.

The company’s stock has fallen since then, ending trading Monday at around $27, down about 17% so far this year.

It ended trading better on Monday, down nearly 6%, extending its losses since October. source: Google Finance

Related to: Backpack pledges 20% equity to token holders amid IPO plans

Garg explained to Fortune that his move toward cryptocurrencies was driven by the promise of reduced fees and operating costs, and that there are “many different layers of intermediation that we will be able to implement.”