Better taps crypto funding for sub-5% mortgage rates

Better.com has announced a partnership with Framework Ventures to access up to $500 million in credit through the Sky stablecoin ecosystem. The collaboration aims to double the lender's originations and eventually offer borrower rates below 5%. This move positions Better as an alternative source of warehouse liquidity backed by originated assets.

Better, a digital mortgage lender, is leveraging cryptocurrency-linked capital to fund as much as $500 million in mortgages. The initiative, detailed in a February 25, 2026, announcement, involves partnering with Framework Ventures to integrate into the Sky stablecoin ecosystem. This setup allows Better to serve as Sky's home finance "Star," an independent decentralized project that deploys capital to generate yield within the broader ecosystem.

CEO Vishal Garg explained that the tokenized structure is designed to reduce financing costs, increase lending capacity, and establish a new yield channel connected to U.S. housing credit. "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," Garg stated. He added that Better will be the first conforming mortgage originator to use tokenized capital at institutional scale to support mortgage assets responsibly.

Vance Spencer, cofounder of Framework Ventures, described the integration as potentially beneficial for all involved. "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," Spencer said. "At the same time, bringing Better on as a Star would give the Sky stablecoin ecosystem a powerful and differentiated new source of yield."

The partnership will proceed through Obex, a Sky-focused incubator managed by Framework Ventures and supported by $2.5 billion in backing. Better retains full control over underwriting and loan origination, while the Star supplies warehouse funding secured by the assets, without raising the company's balance sheet risk. This arrangement is expected to cut costs for Better, its Tinman AI platform partners, and customers by more than 100 basis points annually.

Currently, Better originates $500 million in loans per month and plans to exceed $1 billion this year. The strategy could enable sub-5% interest rates for borrowers, compared to the industry's rates above 6%, while offering token holders yields surpassing typical stablecoin rewards. "All this while providing token holders with yields well above current Stablecoin yield or rewards with superior credit risk," Garg noted. "We're just getting started."

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Rate has introduced RateFi, a new mortgage product that allows qualified borrowers to use verified cryptocurrency holdings for income and asset qualification without selling them. The program operates within Rate's digital mortgage platform and adheres to standard compliance measures. It aims to provide a practical path to homeownership for digital asset holders.

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Newrez, a major U.S. mortgage lender, will start recognizing Bitcoin, Ethereum, and U.S. dollar-backed stablecoins as assets for certain nonagency loan programs from February onward, without requiring borrowers to sell them. This move allows digital holdings to count toward asset verification and income estimates, similar to traditional investments like stocks. The announcement reflects growing integration of crypto into mainstream finance amid a supportive regulatory environment.

Following 2025's regulatory clarity and institutional momentum, BlackRock's Global Outlook envisions stablecoins as mainstream payment bridges, with Ethereum solidifying as the dominant settlement layer for a $298 billion digital dollar market, driven by security, liquidity, and tokenized asset growth.

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The cryptocurrency industry is shifting from its lawless origins toward regulated integration with traditional finance, driven by recent U.S. regulatory actions. Moves by agencies like the SEC, DTCC, and OCC are enabling tokenized assets and stablecoins within core market infrastructure. This evolution signals blockchain as an upgrade to existing systems rather than a parallel alternative.

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