Framework invests $45 million to enter RWA, can Home Token open a new blue ocean?

As tokenization of real-world assets (RWA) moves from concept to large-scale implementation, the boundaries between traditional finance and decentralized finance (DeFi) are being rapidly broken down. On February 24, Canada’s well-known venture capital firm Framework Ventures announced a major deal: acquiring approximately 10% of the publicly listed mortgage lender Better.com for about $45 million.

At the same time, Better.com is planning to launch a token product backed by $500 million in mortgage assets—possibly called “Home Token.” This move not only marks a key step for Framework in the RWA space but also brings new possibilities to the long-stagnant crypto market. This article provides an in-depth analysis of the logic and potential opportunities behind this collaboration.

Traditional Mortgage Giants Going On-Chain: What Exactly Is Home Token?

Better.com is not a newcomer to the crypto industry; it is a publicly listed mortgage lender with traditional roots. The company planned to go public in 2021 with a high-profile valuation of $7.7 billion, but after a decline in market value, it still maintains a valuation of around $450 million. The partnership with Framework Ventures signals its strategic commitment to fully embrace Web3.

According to disclosures, Better.com is working closely with DeFi infrastructure protocol Sky (formerly MakerDAO) to issue token products anchored to real-world assets. The proposed token, “Home Token,” will initially have a pool of up to $500 million, composed of carefully selected mortgage loans and other credit assets.

From a product design perspective, Home Token will first be available to accredited investors, with plans to expand to retail users as regulatory frameworks and infrastructure mature. Vishal Garg, founder and CEO of Better.com, states that the core value of tokenization lies in “eliminating multiple layers of intermediaries,” thereby reducing financing costs and ultimately offering lower-interest mortgage products to homebuyers.

Why Framework Is Betting Big on Better.com

As the lead investor, Framework Ventures is deeply involved in DeFi development and is a key supporter of the Sky ecosystem. Currently, the Sky ecosystem supports its stablecoin system with real-world assets (RWA), with capital exceeding $18 billion.

Vance Spencer, co-founder of Framework Ventures, points out that the core strategy behind this investment is “using stablecoins as a bridge to connect the crypto-asset world with the public stock markets.” By investing in Better.com, Framework is effectively bridging the gap for traditional mortgage assets to enter DeFi—what they call the “last mile.”

For Better.com, bringing in Framework means more than just capital; it’s a move toward compliant, scaled on-chain migration. If Home Token succeeds, it will be the first time a traditional mortgage market asset is managed via a programmable, composable on-chain protocol. This is the fundamental reason Framework is willing to invest $45 million in this venture.

Can Home Token Unlock a New Blue Ocean for RWA?

In terms of asset attributes, residential mortgages offer stable cash flows, long durations, and a large market size—making them highly promising in the RWA space. Compared to stablecoins or government bond RWA products, mortgage tokens are more complex and have a more intricate yield structure, but they also offer higher barriers to entry.

Currently, traditional financial giants like BlackRock and Fidelity are actively exploring tokenized government bonds, while Better.com and Framework are targeting the larger mortgage market. If the Home Token model proves successful, it could open a trillion-dollar new market—allowing on-chain capital to directly participate in the U.S. mortgage market and enabling traditional borrowers to benefit from DeFi’s low-cost financing.

Of course, challenges remain. First, regulatory compliance is a major hurdle: mortgage assets involve complex legal relationships and privacy concerns, so how to achieve compliant issuance and transfer on-chain is a critical issue for Better.com. Second, initially opening only to accredited investors means Home Token may not be accessible to the average crypto user in the short term. However, as Vishal Garg emphasizes, the company is exploring retail access solutions, with specific timelines pending regulatory and technological readiness.

Conclusion

Framework Ventures’ significant investment in Better.com marks another milestone in the RWA track after the recent wave of government bond tokenization. It sends a clear signal: the marriage between traditional financial assets and crypto protocols is accelerating. Whether Home Token can truly open a blue ocean for mortgage tokens depends on Better.com’s execution, regulatory attitudes, and DeFi ecosystem acceptance.

What is certain is that starting with $45 million, the story of RWA has only just begun. For crypto content creators and investors, closely monitoring the progress of Home Token may be key to capturing the next wave of growth.