Framework plans to invest $45 million to acquire a stake in Better.com, which intends to launch the "Home Token" mortgage token.
BlockBeats News, on February 24, Canadian venture capital firm Framework Ventures has reached an agreement to acquire approximately 10% of the publicly listed mortgage lender Better.com for about $45 million. This move comes as Better.com plans to enter the asset tokenization sector and intends to launch a token product backed by $500 million in mortgage and other loan assets.
According to sources, the retail-oriented token may be named "Home Token." The company stated that the initial tokens will only be available to qualified investors, with plans to gradually expand to a broader user base in the future. Better.com founder and CEO Vishal Garg said that tokenization can reduce intermediary steps, thereby lowering financing costs and providing consumers with lower-rate mortgage products.
It is reported that Better.com is collaborating with DeFi ecosystem Sky to bring mortgage assets on-chain. Sky uses real-world assets (RWA) to back stablecoins, and currently, the ecosystem's capital size is about $18 billion. Framework Ventures is also one of Sky's major supporters.
Better.com had planned to go public in 2021 at a valuation of $7.7 billion, but on its actual first day of trading in 2023, the stock price plummeted by more than 90%. The company's current market value is about $450 million.
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