UK-based fintech startup Untangled Finance has secured a $13.5 million fundraise led by Fasanara Capital. The multi-year strategic funding will see the company further develop it products, continue to grow and create an ecosystem.
The startup is bringing ‘institutional-grade credit with a built-in liquidation mechanism on-chain’. It is tokenising real-world private credit assets, such as invoices and SME loans, into on-chain structured credit pools. These pools, in turn, facilitate the issuance of collateralised debt notes to both decentralised finance and traditional finance investors.
Through its partnership with Fasanara, Untangled’s protocol will have access to more than 130 verified asset originators spanning 60 countries, offering investors the opportunity to access institutional-grade assets, traditionally exclusive to major financial institutions. According to an individual investor’s risk appetite, they can choose between originator-specific pools or opt for consistent, passive gains via automated lending pools.
“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," says Francesco Filia, CEO and CIO of Fasanara Capital.
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,” says Filia.
Untangled Finance will be launched on the Celo blockchain in early October, followed by Polygon and Ethereum via Chainlink’s Cross Chain Interoperability Protocol (CCIP).