According to CoinDesk, Untangled Finance, a tokenized real-world asset (RWA) marketplace, has gone live on the Celo network after raising $13.5 million in venture capital. The platform aims to bring tokenized private credit to the blockchain. London-based asset management firm Fasanara Capital led the investment and has also opened two credit pools on the platform, managing off-chain operations and underwriting loans.
Untangled Finance plans to expand to Ethereum and layer 2 network Polygon through Chainlink's Cross Chain Interoperability Protocol, making the platform a multichain and interoperable RWA credit protocol. Asset tokenization has emerged as a key growth opportunity in the digital asset industry, with the market for tokenized assets potentially reaching $5 trillion in the next five years, according to a Bernstein report.
Untangled aims to bring the traditional private credit market, currently valued at over $1 trillion, to blockchains via tokenization. The platform focuses on fintech lending, such as invoice financing and consumer loans based on salary advances, as well as 'green assets' like working capital or development loans for green infrastructure projects. Untangled provides infrastructure for blockchain-based credit pools, where certified investors, firms, and decentralized autonomous organizations (DAOs) can deposit funds to lend and earn a yield. The platform also features a built-in liquidation engine, a forward-looking credit assessment model, and an auction-based withdrawal mechanism for investors who want to exit the pools early.
