Untangled Finance, a London-based financial technology firm, has raised €12.8 million in a multi-year strategic investment round led by Fasanara Capital. Founded in 2020 by experienced professionals in finance, asset origination, and emerging markets, the company’s main objective is to transform private credit assets, including invoices and small and medium enterprise (SME) loans, into on-chain structured credit pools. These credit pools consequently enable the issuance of collateralized debt notes to decentralized finance (DeFi) and traditional finance investors.
The recent investment will allow Untangled Finance to grow its platform and bring on-board more asset originators, offering a diverse range of credit products for its expanding client base. The company also aims to close the gap between traditional finance and DeFi, providing investors with a more secure, efficient, and transparent means of accessing and trading various credit assets.
Real-World Asset Tokenization and Strategic Partnership
Manrui Tang, Untangled Finance’s co-founder, expressed commitment to real-world asset tokenization and highlighted the significance of partnering with Fasanara Capital in developing reliable DeFi yield methods. By utilizing both companies’ expertise, this collaboration aims to spur the growth of the tokenized asset ecosystem and promote the widespread adoption of blockchain technology throughout the financial sector.
Tokenization and Its Benefits
Tokenization employs blockchain technology to convert traditional assets, known as Real World Assets (RWAs), into a digital format. This process offers numerous advantages, such as fractional ownership, borderless access, reduced investment barriers, and increased transparency. Converting assets into digital tokens allows investors to easily trade and manage their investments, creating a more liquid market for traditionally illiquid assets. Tokenization also enables a wider range of potential investors to enter previously inaccessible markets, fostering economic growth and promoting financial inclusivity.
Fasanara Capital CEO Envisions Unparalleled Growth and Opportunities
Francesco Filia, CEO and CIO of Fasanara Capital, expressed enthusiasm for the partnership with Untangled Finance. He believes that the combined efforts of both companies will lead to unparalleled growth and opportunities for all parties involved.
The partnership grants Untangled access to Fasanara’s network of over 130 verified asset originators across 60 countries, enabling ordinary investors to participate in institutional-quality assets typically reserved for large financial institutions.
This collaboration democratizes the investment landscape, empowering individual investors to take part in high-quality investment opportunities. Additionally, the combined expertise of both companies ensures a well-vetted and diversified portfolio, catering to the evolving needs of investors globally.
Untangled Finance Set to Launch and Integrate Multiple Blockchains
Scheduled to launch on the Celo blockchain in early October, Untangled Finance plans to expand to Polygon and Ethereum using Chainlink’s Cross Chain Interoperability Protocol (CCIP). This move will make Untangled Finance one of the first multi-chain and interoperable RWA credit protocols.
By integrating numerous blockchain platforms, the platform aims to facilitate seamless, efficient, and secure transactions for RWAs within the DeFi ecosystem. Leveraging Chainlink’s CCIP ensures reliable communication between the Celo, Polygon, and Ethereum networks, creating opportunities for cross-chain asset management and collaboration.
FAQs – Untangled Finance Revolutionizes the Credit Landscape
What is Untangled Finance?
Untangled Finance is a London-based financial technology firm founded in 2020. Its main objective is to transform private credit assets, such as invoices and SME loans, into on-chain structured credit pools. These credit pools enable the issuance of collateralized debt notes to decentralized finance (DeFi) and traditional finance investors.
How much funding has Untangled Finance raised?
Untangled Finance has raised €12.8 million in a multi-year strategic investment round led by Fasanara Capital.
What are the objectives of Untangled Finance’s platform expansion and diversification?
The company aims to grow its platform, bring on-board more asset originators, and offer a diverse range of credit products for its expanding client base. It also seeks to close the gap between traditional finance and DeFi, providing investors with a more secure, efficient, and transparent means of accessing and trading various credit assets.
What is tokenization and its benefits?
Tokenization uses blockchain technology to convert traditional assets, known as Real World Assets (RWAs), into a digital format. The process offers numerous advantages, such as fractional ownership, borderless access, reduced investment barriers, and increased transparency. Tokenization allows a wider range of potential investors to enter previously inaccessible markets, promoting financial inclusivity and fostering economic growth.
How does the partnership with Fasanara Capital benefit Untangled Finance?
The partnership grants Untangled access to Fasanara’s network of over 130 verified asset originators across 60 countries, enabling ordinary investors to participate in institutional-quality assets typically reserved for large financial institutions. Additionally, the combined expertise of both companies ensures a well-vetted and diversified portfolio, catering to the evolving needs of investors globally.
What plans are for Untangled Finance’s multi-chain and interoperable RWA credit protocols?
Scheduled to launch on the Celo blockchain in early October, Untangled Finance plans to expand to Polygon and Ethereum using Chainlink’s Cross Chain Interoperability Protocol (CCIP). By integrating multiple blockchain platforms, the platform aims to facilitate seamless, efficient, and secure transactions for RWAs within the DeFi ecosystem.
Featured Image Credit: Photo by Mikhail Nilov; Pexels; Thank you!
