Accredited investors are granted access to upgraded security for new DeFi investment opportunities.
Untangled Finance, a protocol for real-world assets (RWAs), has introduced the Celo blockchain’s first on-chain securitization pool. With a loan maximum of $6 million and collateralized by a varied range of French working capital assets from fintech Karmen, the pool is organised under Luxembourg’s securitization regulations.
This venture is part of a broader €100 million senior facility arrangement with Karmen, and it has early backing from the Credit Collective, with Fasanara Capital serving as the senior lender. Protecting assets against originator bankruptcies, the pool provides access to credit analytics for verified investors who complete a thorough know-your-customer (KYC) procedure.
Since its launch in 2020, Untangled’s platform has provided access to more than 140 fintech lenders, allowing users to tokenize real-world assets such as invoices and small and medium enterprise loans. In addition to the Karmen token pool, Untangled intends to create the Fasanara Diversified Fund on-chain and a senior note supported by invoice financing assets in Eastern Europe.
“The Untangled Finance group is leading the way in tokenizing private credit,” said Isha Varshney, the Celo Foundation’s Head of Ecosystem. Tokenized real-world assets have the potential to enhance risk management and access to capital for companies and entrepreneurs globally. Untangled demonstrates this by integrating fintech lending onchain with novel credit evaluation algorithms.
According to the RWA.xyz “Private Credit” dashboard, RWA protocols often target decentralized ecosystems like Ethereum and Solana that have a substantial amount of total value locked (TVL). The TVL of Celo is small, at approximately $100 million, but Tang says that there were a number of factors that led to its selection, including a common vision for the future of RWAs and a shared emphasis on them as an effort.
“Although Untangled is multichain and will eventually launch on several blockchain platforms, Celo was our first choice for this adventure. Community financing from organisations like the Credit Collective will, in our opinion, promote the further expansion of RWAs. Investors may now trade easily on Celo thanks to the recent native deployment of USDC and USDT,” she says.
Karmen co-founder and CEO Gabriel Thierry emphasizes that the company can speed up the deployment of working capital loans for French SMBs thanks to this RWA initiative, which connects the decentralised and conventional finance sectors.
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