DeFi
Untangled Finance Launches DeFi’s First Private Institutional Credit Pool
Finances unraveled, a real-world asset (RWA) DeFi protocol backed by institutional-grade assets, announced the launch of its first on-chain securitization pool on the Celo blockchain. This marks an important step in introducing private credit into the decentralized financial ecosystem with enhanced security measures.
Structured according to the securitization framework established in Luxembourg and open to accredited investors who follow a robust KYC process, the pool uses full asset ring-fencing to protect assets against the risk of originator bankruptcy. Guaranteed by a diversified portfolio of French working capital assets initiated by Karmen, a fintech lender specializing in instant loans and working capital for digital small and medium-sized enterprises (SMEs) in France, the pool has established a cap of debt of 6 million USDC dollars. Verified investors have access to pool-specific credit analyzes and other relevant documents. The Credit Collective, a Celo community-led consortium of builders and investors, provided early engagement. Supported by Fasanara Capital as senior lender, this initiative is part of a wider €100 million senior credit agreement currently being finalized with Karmen.
Commenting on the launch, Manrui Tang and Quan Le, co-founders of Untangled Finance, said: “Traditionally, private credit is mainly available to large financial institutions due to the complexity of asset verification and liquidity issues. At Untangled, our goal is to democratize access to these investment opportunities for DeFi investors around the world in a risk-adjusted manner, while improving access to capital and making financing more accessible to investment engines. growth of economies: SMEs. As stablecoins continue to gain traction, these high-quality private credit securities provide strong support, significantly improving their stability and reliability as a medium of exchange.
Founded in 2020, Untangled leverages blockchain technology to tokenize real-world collateral, such as invoices and SME loans, making them accessible to investors around the world. In turn, this streamlines access to capital markets for SMEs around the world, particularly those in emerging markets.
“The Untangled Finance team is pioneering the tokenization of private credit,” said Isha Varshney, Head of Ecosystem at the Celo Foundation. “By bringing fintech lending online with innovative credit scoring models, Untangled highlights the potential of real-world tokenized assets to improve access to financing and risk management for the world’s entrepreneurs and businesses entire.”
Francesco Filia, CEO of Fasanara Capital, remarked on the impact of this integration: “The integration of sophisticated fintech lending with the digital asset ecosystem through Untangled Finance represents a transformative change in finance. This initiative plans a significant expansion of the tokenized debt market and sets new benchmarks for the asset classes available in the rapidly evolving landscape of decentralized finance.
Untangled has access to over 140 fintech lenders, each rigorously vetted and funded by Fasanara through a detailed due diligence process that can extend up to eight months. After the initial Karmen token pool, several additional pools will be launched, including the Fasanara On-Chain Diversified Fund and a senior security backed by Eastern European invoice financing assets.
Gabriel Thierry, co-founder and CEO of Karmen, highlighted the operational synergies, saying: “Our collaboration with Untangled Finance has revolutionized access to capital for fintech initiators, bridging the gap between traditional finance and DeFi technology, thus allowing Karmen to accelerate its deployment. working capital loans for French SMEs.
Today’s launch of Untangled’s credit pool on Celo is the latest development in a period of thriving RWA-related activity on the blockchain. Earlier this year, USDC and USDT deployed natively on Celo. The integrations allow users to leverage stablecoins for transactions and pay gas fees.
About Finances Unraveled
Founded in 2020 by two traditional finance and RWA tokenization industry veterans, Untangled distinguishes itself by working exclusively with institutional-grade private credit assets, secured by a robust securitization structure. The protocol pioneered the first RWA credit oracle infrastructure, enabling dynamic pricing of RWAs with full on-chain monitoring of the performance of the underlying assets and collateral. Additionally, the protocol incorporates a built-in liquidation mechanism to facilitate price discovery and provide exit opportunities for investors. With these innovations, Untangled is leading the charge in RWA Credit 2.0. To learn more, visit Untangled.Finance