Tokenized Private-Credit Platform Untangled Opens Its First USDC Lending Pool on Celo

As a crypto investor, I’d describe it this way: I have the opportunity to invest in a pool regulated by Luxembourg securitization laws, with an initial debt ceiling of $6 million. By depositing USDC stablecoin, I help provide capital to Karmen, a company based in France that focuses on providing instant loans and working capital for small and medium-sized digital enterprises. According to recent news, this is the arrangement as outlined in a press release.

Fasanara Capital, an institutional asset manager, and The Credit Collective, a community group focused on ecosystem development within the Celo network, were among the initial investors for this project.

As a crypto investor, I’d put it this way: “The latest announcement unveils a new pool, which could be part of a larger senior facility deal with Karmen, valued at approximately 100 million euros or $107 million. However, please note that the finalization of this agreement is yet to be achieved.”

As a researcher in the field of cryptocurrencies, I’ve noticed that private credit has emerged as a key player in the asset-tokenization trend sweeping through the industry. By bringing traditional assets such as bonds, credits, and funds to the blockchain, we aim to enhance efficiency and transparency, facilitate faster settlements, and expand access to these financial instruments for a wider audience.

According to data from rwa.xyz, the private-credit market on the blockchain surpasses $600 million. However, this is a mere drop in the bucket compared to the global private credit industry, which the International Monetary Fund values at over $2 trillion based on Financial Times reports. The FT’s independent research suggests an even more substantial figure.

As the head of ecosystem at the Celo Foundation, I’m excited to highlight how Untangled is revolutionizing the fintech lending landscape by integrating it on-chain using advanced credit assessment models. This innovation showcases the transformative power of tokenized real-world assets in enhancing access to funding and refining risk management for entrepreneurs and businesses across the globe.