Real-world asset (RWA) protocol Untangled Finance marks a significant milestone with its inaugural on-chain securitization pool on the Celo blockchain. The pool, structured under Luxembourg’s securitization laws, introduces a new era of accessibility to private credit opportunities.
Untangled Finance, a leading RWA protocol, has unveiled its pioneering on-chain securitization pool on the Celo blockchain, representing a transformative step towards democratizing access to private credit opportunities. The pool, structured in accordance with Luxembourg’s securitization laws, is collateralized by a diverse portfolio of French working capital assets sourced from fintech Karmen, with a debt ceiling set at $6 million.
Early support for this initiative has been demonstrated by The Credit Collective, backed by Fasanara Capital as the senior lender. This move forms part of a larger €100 million senior facility agreement with Karmen, highlighting the substantial backing for the pool. Access to credit analytics is provided to verified investors who undergo a comprehensive know-your-customer (KYC) process, ensuring asset protection against originator bankruptcy.
Co-founders of Untangled Finance, Manrui Tang, and Quan Le, expressed their vision for democratizing access to investment opportunities for DeFi investors worldwide in a risk-adjusted manner while facilitating capital access for small and medium-sized enterprises (SMEs), the growth engines of economies. They emphasized the stability and reliability of high-quality private credit securities, particularly in enhancing the stability of stablecoins amid increasing adoption.
Untangled Finance’s platform, operational since 2020, tokenizes real-world collateral such as invoices and SME loans, with access to over 140 fintech lenders. Following the launch of the Karmen token pool, Untangled plans to introduce additional pools, including the Fasanara Diversified Fund on-chain and a senior note backed by Eastern European invoice finance assets.
Isha Varshney, Head of Ecosystem at the Celo Foundation, commended Untangled Finance for pioneering private credit tokenization, noting its potential to improve access to funding and risk management for entrepreneurs and businesses worldwide. Despite its modest total value locked (TVL) of nearly $100 million, Celo was chosen as the platform of choice due to shared objectives in advancing RWAs and facilitating seamless transactions.
Manrui Tang highlighted Untangled’s multichain approach, with plans for deployment on other blockchain platforms in the future. She emphasized Celo’s appeal, citing recent developments such as the native deployment of USDC and USDT, which facilitate investor transactions and contribute to the continued proliferation of RWAs.
Gabriel Thierry, co-founder & CEO of Karmen, emphasized the significance of bridging decentralized and traditional finance sectors, enabling accelerated deployment of working capital loans for French SMBs.
Untangled Finance’s foray into on-chain securitization marks a pivotal moment in the evolution of private credit opportunities, offering a seamless, transparent, and accessible avenue for investors and SMEs alike.
Photo by Layne Lawson on Unsplash
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