London-based fintech, Untangled Finance, has successfully raised €12.8 million in strategic funding, marking a significant milestone in its mission to revolutionize the landscape of institutional-grade credit through on-chain solutions. Fasanara Capital, a leading fintech investment platform and lending innovator, led the multi-year funding round.
Founded in 2020 by finance professionals with extensive backgrounds in finance, asset origination, and emerging markets, Untangled specializes in the tokenization of real-world private credit assets. These assets, including invoices and SME loans, are transformed into on-chain structured credit pools. The resulting collateralized debt notes are made available to investors from both decentralized finance (DeFi) and traditional finance (TradFi).
Manrui Tang, Co-founder of Untangled Finance, emphasized the company’s commitment to real-world asset tokenization: “Since 2017, our focus has been on real-world asset tokenization 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.”
Untangled aims to address the disparity in borrowing terms between large corporations and their smaller suppliers, particularly SMEs in emerging economies. Information asymmetry contributes to higher funding costs for these SMEs, which Untangled aims to alleviate through its innovative approach.
Blockchain-based tokenization allows traditional assets, known as Real World Assets (RWAs), to be brought on-chain. Tokenized RWAs provide fractional ownership, enabling borderless access, reduced investment thresholds, enhanced transparency, and improved security. Francesco Filia, CEO and CIO of Fasanara Capital, expressed the significance of this merging of worlds, stating, “The Untangled team has a rare combination of being rooted in real-world finance and yet has acquired deep expertise in blockchain and DeFi.”
Untangled Protocol’s primary focus is on private credit markets, recognizing the potential of DeFi in this space. The partnership with Fasanara provides access to over 130 verified asset originators across 60 countries, offering investors the opportunity to access institutional-grade assets typically exclusive to major financial institutions. Investors can tailor their approach based on their risk appetite, choosing between originator-specific pools or consistent, passive gains via automated lending pools.
The launch of Untangled Finance is scheduled for early October on the Celo blockchain, followed by integration with Polygon and Ethereum through Chainlink’s Cross Chain Interoperability Protocol (CCIP). This positions Untangled as one of the pioneering multichain and interoperable RWA credit protocols in the market.