Source: Fortune.com
Summary
Better.com, a publicly traded mortgage issuer, has partnered with Framework Ventures to dive into DeFi and tokenize mortgages. The deal involves Framework Ventures buying 10% of Better.com’s stock, worth around $45 million. Better.com plans to issue a token backed by $500 million worth of mortgages and other loans, initially available to accredited investors. The company aims to expand access to a broader set of participants and potentially offer a retail-focused cryptocurrency called “Home Token”.
Our Reading
The strategy enters a familiar phase.
Better.com is turning to crypto and tokenization as its stock price flags, with a market capitalization of around $450 million. The company plans to use AI to evaluate potential homeowners and cut out intermediaries, reducing fees. Framework Ventures, a major backer of DeFi ecosystem Sky, is buying 10% of Better.com’s stock. The move is part of a larger trend of financial firms experimenting with tokenization, including BlackRock and Fidelity.
Better.com’s push into DeFi is a bid to offer consumers cheaper mortgages by financing at a lower cost.
The company’s founder and CEO, Vishal Garg, says the move will allow them to “take out” layers of intermediation. Framework Ventures’ cofounder, Vance Spencer, describes the partnership as “bridging the crypto coin-denominated universe to the public equities universe”.
Tokenization is the new efficiency.
Author: Evan Null
