Untangled Finance, a marketplace for tokenized real-world assets (RWA), has gone live on the Celo network following a $13.5 million venture capital investment. The lead investor in the funding round was London-based asset management firm Fasanara Capital, which has also established two credit pools on the platform. Asset tokenization has emerged as a key growth opportunity in the digital asset industry, with the potential market size reaching $5 trillion in the next five years. Untangled aims to bring the private credit market, which is currently worth over $1 trillion, to blockchains through tokenization.
Co-founders of Untangled, Manrui Tang and Quan Le, stated that the platform focuses on fintech lending, including invoice financing and consumer loans, as well as lending for green infrastructure projects. Untangled provides infrastructure for blockchain-based credit pools, where certified investors, firms, and decentralized autonomous organizations can deposit funds to lend and earn a yield. Depositors receive an ERC-20 token to represent their positions.
The platform differentiates itself in the RWA lending space by offering a built-in liquidation engine that can auction off collateral assets to improve the health of the pool, a forward-looking credit assessment model, and an auction-based withdrawal mechanism for early pool exits. Fasanara Capital’s CEO and CIO, Francesco Filia, sees the merging of fintech lending and the transfer of values through digital assets as an upcoming trend. With the launch of Untangled Finance, the tokenization of real-world assets has taken a significant step forward.
