Untangled Finance, a London-based fintech, has recently secured €12.8 million in multi-year strategic funding to accelerate its mission to bring institutional-grade credit with a built-in liquidation mechanism on-chain.
The funding round was led by Fasanara Capital, the fintech investment platform and lending pioneer.
The company aims to provide a platform that will enable borderless access to private credit markets, tokenising real-world private credit assets and making them more accessible to underserved SME and consumer markets.
Untangled Finance’s platform offers a unique solution to the challenges faced by traditional finance. By combining blockchain technology with a built-in liquidation mechanism, the company aims to create a more transparent and secure way of investing in private credit assets.
The platform sources assets from a pool of over 100 fintech lenders in 60+ countries who have a proven track record of repayment with institutional partners.
Untangled Finance’s verified asset originators provide high-quality collateral backing for tokenised credits, ensuring that the assets are fairly priced and that investors are protected from volatilities in the market.
Untangled Finance’s CEO, Manrui Tang, believes that the partnership with Fasanara Capital will enable the company to expand its reach and provide more investment possibilities to institutional-grade investors.
The company’s innovative approach to private credit markets has garnered interest from major financial institutions, and its automated lending pools and forward-looking credit assessment model have helped to reduce information asymmetry and improve the efficiency of the RWA ecosystem.
With the help of Fasanara Capital and other investors, Untangled Finance is poised to revolutionise the way that private credit assets are traded and invested in, creating a more transparent, secure, and accessible market for all.
Untangled Finance’s Innovative Approach
Untangled Finance, a London-based fintech, has raised $13.5 million in multi-year strategic funding from Fasanara Capital to bring institutional-grade private credit on-chain.
The company’s innovative approach merges traditional finance with DeFi, creating investment possibilities for institutional-grade credit that were previously unavailable.
Defi and Traditional Finance: A Merging of Worlds
Untangled Finance’s approach is unique in that it merges the transparency and borderless access of DeFi with the verified asset originators and risk appetite of traditional finance.
By tokenising real-world private credit assets, the company creates on-chain structured credit pools that offer investors exposure to institutional-grade assets. This approach allows for fairly priced lending to underserved SME and consumer markets, which is not typically available through traditional financial institutions.
From Asset Origination to Tokenisation
Untangled Finance’s platform allows for the tokenisation of assets, creating fractional ownership and collateralised debt notes that can be traded on-chain.
The company’s credit assessment model and liquidation framework ensure that the risk of investing in private credit assets is mitigated, while the forward-looking credit assessment model allows for investment in emerging markets that were previously inaccessible.
Untangled Finance’s partnership with Chainlink’s cross-chain interoperability protocol (CCIP) allows for the creation of originator-specific pools, which offer investors passive gains through automated lending pools.
The company’s use of the Celo blockchain and multichain approach ensures cross-chain interoperability, allowing for the flow of capital across international boundaries.
Untangled Finance’s CEO, Manrui Tang, and co-founder Francesco Filia, have created a platform that offers transparency and fairness to investors, while also providing liquidity to asset originators.
The company’s platform allows for the tokenizing of real-world private credit assets, creating investment opportunities that were previously unavailable to retail investors.
Untangled Finance’s innovative approach to private credit markets offers a new way for investors to gain exposure to institutional-grade credit while also providing liquidity to asset originators.
The company’s use of blockchain technology ensures security and transparency, while also allowing for the creation of on-chain structured credit pools.
With investors from over 60 countries, Untangled Finance is creating a new era of investment possibilities through DeFi yield mechanisms.
