Untangled Finance, a London-headquartered lending platform, has secured $13.5m (£11m) in investment from Fasanara Capital.
Launched in 2020, the fintech startup takes real-world assets such as SME loans and then converts them into buyable debt notes. The notes can then be purchased with a centralised or decentralised currency. Untangled Finance plans to launch on the Celo, Polygon and Ethereum blockchains.
“From the outset, it has been important for us to have liquidation as a built-in feature of our protocol, not an afterthought,” said Quan Le, co-founder of Untangled Finance.
“Together with institutional-grade assets, we hope to contribute to the real-world assets ecosystem by further developing its liquidation infrastructure that will help this new market to scale.”
Benefits touted by Untangled to tokenising physical assets include lower investment requirements, global reach, the ability for fractional holdings and greater transparency.
Collaborating with Fasanara Capital will give Untangled access to over “130 verified asset originators” in 60 countries.
Francesco Filia, CEO and CIO at Fasanara Capital, said: “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.”
Fasanara Capital’s recent investments include a holographic workout mirror startup.