On Thursday, the French fintech lender Karmen and Untangled Finance, a tokenized real-world asset (RWA) platform supported by Fasanara Capital, launched their first private credit pool on the Celo (CELO) network.
According to a press release, the pool, which is set up in accordance with Luxembourg’s securitization regulations and has a $6 million debt ceiling at first, allows accredited investors to deposit USDC stablecoin and will supply funding to Karmen, which specializes in lending money instantly and providing working capital to small and medium-sized digital businesses in France.
Early investors in the facility included community-led ecosystem development group The Credit Collective and institutional asset management Fasanara Capital.
Untangled stated that the new pool is a part of a possible, as-yet-unfinalized, larger senior facility agreement for 100 million euros ($107 million) with Karmen.
The asset-tokenization trend in the cryptocurrency space, which takes traditional assets like bonds, credit, and funds to the blockchain for improved efficiency and transparency, quicker settlements, and wider access, has put private credit at the forefront.
Based on data from rwa.xyz, the on-chain private-credit industry is valued at more than $600 million. For the worldwide private credit market, which the Financial Times reports the IMF values at slightly over $2 trillion, that’s chump change. The newspaper’s internal investigation yielded an even higher number.
“Untangled demonstrates the potential of tokenized real-world assets to improve access to funding and risk management for entrepreneurs and businesses worldwide by bringing fintech lending on-chain with innovative credit assessment models,” said a statement from Isha Varshney, head of ecosystem at network development organisation Celo Foundation.
Accredited investors can access the private credit pool, which had an initial ceiling of $6 million USDC and was set up in accordance with Luxembourg securitization regulations.
The platform stated that the new pool is a component of a possible senior facility arrangement worth 100 million euros ($107 million) with fintech lender Karmen, which hasn’t been confirmed yet.
