Untangled Finance, a cutting-edge DeFi protocol, has made waves in the financial world with the launch of its on-chain securitization pool on the Celo blockchain. This groundbreaking development brings accessibility and security to the private credit space within DeFi ecosystems, marking a significant shift in the industry.
The securitization pool, backed by institutional-grade assets and structured for accredited investors, is a testament to Untangled Finance’s commitment to innovation and transparency. With stringent KYC protocols and asset ring-fencing measures in place, investors can rest assured that their investments are secure against the risk of originator bankruptcy.
Collateralized by a diverse portfolio of French working capital assets from fintech lender Karmen, the pool sets a debt ceiling of $6 million USDC. Verified investors will have access to detailed credit analytics and documentation, empowering them to make informed decisions about their investments.
The support of The Credit Collective and Fasanara Capital further validates Untangled Finance’s approach, highlighting the confidence in the platform’s ability to democratize access to high-quality private credit securities. This initiative, part of a larger senior facility agreement with Karmen, aims to make capital more accessible for SMEs, driving economic growth and empowerment.
Co-Founders Manrui Tang and Quan Le are dedicated to democratizing investment opportunities traditionally reserved for large financial institutions. They see stablecoins as a key component in enhancing the stability and reliability of private credit securities, making them a valuable medium of exchange.
Since its inception, Untangled Finance has been a pioneer in leveraging blockchain technology to tokenize real-world collateral, opening up global capital markets to investors. This innovation not only streamlines financing for SMEs worldwide but also promotes economic growth and empowerment, particularly in emerging markets.
The Celo Foundation’s Head of Ecosystem, Isha Varshney, commended Untangled Finance for its pioneering work in tokenizing real-world assets, recognizing its potential to revolutionize funding and risk management for entrepreneurs globally. Francesco Filia, CEO of Fasanara Capital, sees the integration of fintech lending with the digital asset ecosystem as a game-changer, predicting significant growth in the tokenized debt market.
Looking ahead, Untangled Finance plans to introduce more securitization pools, including the Fasanara Diversified Fund and a senior note backed by Eastern European invoice finance assets. This expansion underscores the platform’s dedication to operational synergies and the convergence of traditional finance with DeFi technology.
Gabriel Thierry, CEO of Karmen, emphasized the transformative impact of their collaboration with Untangled Finance, highlighting the acceleration of capital access for fintech originators and the facilitation of working capital loans for French SMBs. This partnership is a testament to the power of collaboration in driving innovation and growth in the financial sector.
