Untangled Finance, the London-based FinTech, has recently finalised a strategic fundraise of £13.5m.
This multi-year strategic funding was led by Fasanara Capital, a pioneer in FinTech investment and lending.
Established in 2020, Untangled Finance was founded by professionals possessing a robust background in finance, asset origination, and emerging markets. The platform’s unique protocol specialises in tokenising real-world private credit assets, such as invoices and SME loans, converting them into on-chain structured credit pools. These pools consequently enable the issuance of collateralised debt notes, catering to both DeFi and TradFi investors.
The recent funding will fuel Untangled’s vision to democratise capital accessibility and pricing. It aims to narrow the gap between large corporations and SMEs in terms of borrowing privileges and to streamline international capital flow, reducing regional credit investment challenges.
Untangled Finance leverages tokenisation, a process utilising blockchain technology, to introduce traditional assets (Real World Assets or RWAs) on-chain. This ensures fractional ownership, borderless access, lowered investment thresholds, enhanced transparency, and a secure, immutable transaction record.
Untangled Protocol zeroes in on private credit markets, observing their high utility for DeFi. Partnering with Fasanara, the protocol will have access to over 130 validated asset originators from 60 countries. This partnership will open doors for investors to tap into institutional-grade assets, which were previously the exclusive domain of large financial institutions.
Furthermore, the platform will soon be launched on the Celo blockchain, followed by introductions to Polygon and Ethereum through Chainlink’s CCIP. This move will place Untangled among the pioneers of multichain and interoperable RWA credit protocols.
Untangled Finance’s co-founder Manrui Tang said, “Since 2017, our focus has been on real-world asset tokenisation where we see growing interest. Our partnership with Fasanara is a step towards developing reliable DeFi yield mechanisms, broadening the investment possibilities in crypto but also helping to mitigate its inherent volatilities, all while striving to make finance more accessible around the world.”
Quan Le, Untangled Finance’s other co-founder, remarked, “From the outset it has been important for us to have liquidation as a built-in feature of our protocol, not an afterthought. Together with institutional-grade assets, we hope to contribute to the RWA ecosystem by further developing its liquidation infrastructure that will help this new market to scale.”
Lastly, Fasanara Capital’s CEO and CIO Francesco Filia added, “We see an upcoming merging of worlds on one side, fintech lending which fills the gap in underserved SME and consumer markets and, on the other, the way values are being transferred within the new world of digital assets.
“The Untangled team has a rare combination of being rooted in real world finance and yet has acquired deep expertise in blockchain and DeFi. We are looking forward to working with Untangled to engineer these entirely new financial rails so, for the first time, being able to handle users at scale.”
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
