Untangled Finance raised over $13m to move its institutional-grade credit to blockchain

Untangled Finance, a UK-based fintech that operates a platform facilitating the tokenization of real-world assets, managed to raise around $13.5 million in order to bring its institutional-grade private credit on-chain.

The company’s credit service features a built-in liquidation mechanism, and the firm believes that moving it to blockchain would bring a considerable advantage.

As mentioned, the firm’s funding round was extremely successful, allowing it to raise $13.5 million. The round was led by Fasanara Capital, and Untangled’s co-founder, Manrui Tang, said: “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.”

Partnership with Fasanara will open up new opportunities

Untangled was set up in 2020, by a team with experience in finance, asset origination, and emerging markets. Their goal was to close the gap between traditional finance and DeFi. The platform created a protocol that focuses on tokenization of real-world private credits, like invoices or SME loans.

Through tokenization, it would turn them into on-chain structured credit pools, facilitating the issuance of collateralized debt notes for both TradFi and DeFi investors.

Tang has been focused on tokenization of real-world assets since 2017, noting that his company has seen a growing interest in this sector. The process of tokenization takes advantage of blockchain technology, and uses it to bring traditional assets on-chain.

That way, it enables some of the benefits of digital assets, such as borderless access, fractional ownership, and the ability to make making capital more accessible, not to mention more fairly priced. Since its foundation, untangled Finance has focused primarily on private credit markets.

However, its partnership with Fasanara will open new doors for it, granting the protocol access to over 130 verified asset originators across 60 different countries.

Untangled to connect DeFi with real-world assets

One of Untangled’s major goals is to expand crypto investment opportunities into high quality assets at scale, which is why the company started working on its unique liquidation mechanism for these assets in the first place.

It believes that DeFi has a large role to play in the future of the financial industry, but as things are right now, there are numerous obstacles in connecting real-world assets to the DeFi sector.

This is what Untangled aims to change through innovation, and along the way, it aims to offer diversified DeFi yield products through the process of tokenization.