Untangled Finance Blazes Trail with First-Ever On-Chain Securitization Pool on Celo

Untangled Finance marks a significant milestone with its groundbreaking on-chain securitization pool on the Celo blockchain, introducing a new era of accessibility to private credit opportunities. Structured under Luxembourg's securitization laws, the pool is collateralized by French working capital assets sourced from fintech Karmen and supported by The Credit Collective, backed by Fasanara Capital. Providing access to verified investors, the pool democratizes investment opportunities and facilitates capital access for SMEs while enhancing the stability of stablecoins.

Untangled Finance Breaks New Ground with On-Chain Securitization Pool on Celo, Unlocking Private Credit Accessibility

London, United Kingdom – March 10, 2023 - In a milestone achievement for the decentralized finance (DeFi) industry, Untangled Finance, a leading real-world asset (RWA) protocol, has launched its inaugural on-chain securitization pool on the Celo blockchain. This groundbreaking move opens up unprecedented opportunities for investors and small and medium-sized enterprises (SMEs) alike, bridging the gap between traditional and decentralized finance.

Structured under the robust legal framework of Luxembourg's securitization laws, the pool is collateralized by a carefully curated portfolio of French working capital assets sourced from the reputable fintech lender, Karmen. With a debt ceiling set at $6 million, the pool provides investors with access to high-quality private credit assets, a class traditionally reserved for institutional investors and inaccessible to most DeFi participants.

Demonstrating strong support for this pioneering initiative, The Credit Collective, backed by the prominent investment firm Fasanara Capital, has emerged as the senior lender. This move is part of a larger €100 million senior facility agreement with Karmen, showcasing the substantial backing and confidence in the pool's viability.

To ensure the highest levels of investor protection and regulatory compliance, access to credit analytics and investment opportunities is limited to verified investors who have undergone a thorough know-your-customer (KYC) process. This rigorous screening ensures the pool's integrity and mitigates the risk of originator bankruptcy.

Manrui Tang and Quan Le, the visionary co-founders of Untangled Finance, expressed their unwavering commitment to democratizing access to investment opportunities for DeFi investors worldwide. Their vision extends beyond profit maximization, encompassing the crucial role that private credit can play in economic growth and stability.

"This on-chain securitization pool is a watershed moment for the DeFi industry," said Tang. "It opens up new avenues for investors to diversify their portfolios with high-quality private credit assets, traditionally inaccessible to them. Simultaneously, it provides SMEs with a reliable and cost-efficient source of funding to fuel their growth and innovation."

Untangled Finance's proprietary platform, operational since 2020, has consistently broken new ground in the tokenization of real-world assets, including invoices and SME loans. Boasting partnerships with over 140 fintech lenders, the platform has unlocked a wealth of investment opportunities for DeFi participants.

Following the successful launch of the Karmen token pool, Untangled Finance has ambitious plans to introduce a suite of additional pools, including the Fasanara Diversified Fund on-chain and a senior note backed by Eastern European invoice finance assets. These diversified offerings will cater to a wide range of investor risk appetites and investment horizons.

Isha Varshney, Head of Ecosystem at the Celo Foundation, lauded Untangled Finance for its trailblazing efforts in private credit tokenization. She highlighted the potential of this innovation to transform access to funding and risk management for entrepreneurs and businesses around the globe.

"We are thrilled to welcome Untangled Finance to the Celo ecosystem," said Varshney. "Their commitment to advancing RWAs and facilitating seamless transactions aligns perfectly with Celo's mission of fostering financial inclusion and innovation. We believe that this partnership will significantly enhance our platform's appeal to investors and businesses alike."

Despite its relatively modest total value locked (TVL) of nearly $100 million, Celo was strategically selected as the blockchain of choice for this groundbreaking pool due to its shared objectives and advanced features. Recent developments, such as the native deployment of USDC and USDT, have further enhanced Celo's appeal and facilitated investor transactions.

Untangled Finance's multichain approach ensures that the benefits of on-chain securitization will not be confined to Celo. The team plans to deploy similar pools on other blockchain platforms in the future, expanding the reach of private credit opportunities to a wider audience.

Gabriel Thierry, co-founder and CEO of Karmen, emphasized the profound significance of bridging the divide between decentralized and traditional finance sectors. This collaboration enables accelerated deployment of working capital loans for French SMBs, providing them with the financial lifeline they need to thrive and contribute to economic growth.

"We are proud to partner with Untangled Finance and The Credit Collective on this groundbreaking initiative," said Thierry. "By leveraging the power of blockchain technology, we can streamline and democratize access to private credit, empowering entrepreneurs and businesses to unlock their full potential."

Untangled Finance's foray into on-chain securitization marks a pivotal moment in the evolution of private credit opportunities. It offers a seamless, transparent, and accessible avenue for investors and SMEs alike, fostering economic growth and financial inclusion. As the DeFi industry continues to mature, Untangled Finance's pioneering spirit and unwavering commitment to innovation will undoubtedly shape its future trajectory.