Untangled Finance Launches First On-Chain Securitization Pool on Celo Blockchain
Untangled Finance Launches First On-Chain Securitization Pool on Celo Blockchain
Untangled Finance, a real-world asset (RWA) DeFi protocol, has made a significant announcement with the launch of its first on-chain securitization pool on the Celo blockchain. This move is a major step towards bringing private credit into the decentralized finance ecosystem with enhanced security measures.
The pool, structured under Luxembourg’s securitization framework, is open to accredited investors who complete a robust KYC process. It utilizes asset ring-fencing to protect assets against the risk of originator bankruptcy. Collateralized by a diverse portfolio of French working capital assets originated by Karmen, a fintech lender specializing in instant loans for digital SMEs in France, the pool has a debt ceiling of $6 million USDC.
Co-Founders of Untangled Finance, Manrui Tang and Quan Le, expressed their goal of democratizing access to private credit investment opportunities for DeFi investors worldwide in a risk-adjusted manner. They aim to make financing more accessible for SMEs, especially those in emerging markets.
Untangled Finance leverages blockchain technology to tokenize real-world collateral, making it available to global investors. This streamlines access to capital markets for SMEs worldwide, fostering growth and economic development.
The integration of fintech lending with the digital asset ecosystem through Untangled Finance has been praised by industry experts. Francesco Filia, CEO of Fasanara Capital, highlighted the transformative shift in finance brought about by this initiative.
Untangled Finance plans to launch additional pools in the future, including the Fasanara Diversified Fund on-chain and a senior note backed by Eastern European invoice finance assets. This expansion will further enhance access to capital for fintech originators and businesses.
Today’s launch of Untangled’s credit pool on Celo is part of a growing trend of RWA-related activity on the blockchain. The protocol’s innovative approach to RWA credit 2.0 sets it apart in the decentralized finance space.
For more information about Untangled Finance and its groundbreaking initiatives, visit their website at untangled.finance.