Untangled Finance, a tokenized real-world asset (RWA) platform backed by Fasanara Capital, opened its first private credit pool on the Celo (CELO) network on Thursday with French fintech lender Karmen.

The pool, structured under Luxembourg's securitization regulations with a debt ceiling of $6 million at the start, lets accredited investors deposit the USDC stablecoin and will provide capital to Karmen, which specializes in providing instantaneous loans and working capital to small and medium-sized digital enterprises in France, according to a press release.

Institutional asset manager Fasanara Capital and The Credit Collective, a Celo community-led ecosystem development organization, were early investors in the facility.

The new pool is part of a potential broader senior facility agreement worth 100 million euros ($107 million) with Karmen, which has not yet been finalized, Untangled said.

Private credit has been at the forefront of the cryptocurrency industry's asset-tokenization trend, which brings conventional assets like bonds, credit and funds to the blockchain for increased efficiency and transparency, faster settlements and broader access.

The on-chain private-credit market stands at over $600 million, according to rwa.xyz data. That's small change for the global private credit industry, which the IMF estimates at just over $2 trillion, according the Financial Times. The newspaper's own research came up with an even larger figure.

"By bringing fintech lending on-chain with an innovative credit assessment models, Untangled showcases the potential of tokenized real-world assets to improve access to funding and risk management for entrepreneurs and businesses worldwide," Isha Varshney, head of ecosystem at network development organization Celo Foundation, said in a statement.