Fintech Firm Newity Raises $11 Million to Bring Small Business Loans Onchain

Newity, a fintech firm focused on small business lending, has completed a $11 million strategic fundraising round led by CMT Digital. The investment, structured as a simple agreement for future equity (SAFE), marks the firm's first external funding since its 2020 launch. The firm plans to use the capital to expand its AI-first underwriting platform and build blockchain infrastructure to connect small business credit with institutional and crypto-native capital markets.

Newity was founded during the pandemic to support small businesses through the Paycheck Protection Program and later shifted to SBA 7(a) and growth term loans. The firm acts as a lending service provider, partnering with banks like Northeast Bank to originate and approve loans. To date, Newity has processed over $12 billion in financing for more than 125,000 small businesses.

The firm's AI-driven underwriting platform analyzes credit checks, identity verification, and tax data to streamline the loan application process. It offers a fully online application process with faster timelines—funding in as few as 21 days. Newity is now exploring blockchain integration for its loans and aims to announce its strategy in the first quarter.

Why the Move Happened

The move to blockchain infrastructure is intended to address inefficiencies in traditional SME lending. CMT Digital, a division of CMT Group, emphasized the potential to scale automation and liquidity options through institutional and crypto-native channels. By leveraging blockchain, Newity aims to enhance liquidity for credit assets by converting them into digital instruments that can be traded.

The blockchain strategy aligns with broader trends in real-world asset (RWA) tokenization and the growing adoption of decentralized finance (DeFi) concepts in core financial services. Newity's co-CEOs stated that the mission is to reinvent financial infrastructure connecting entrepreneurs to capital using AI and blockchain.

What Analysts Are Watching

Analysts are monitoring how Newity navigates regulatory challenges and integrates blockchain with legacy financial systems. The firm also needs to build trust with non-crypto-native business owners as it introduces onchain solutions.

Newity's blockchain-based lending model could redefine the $350 billion annual small business funding gap by streamlining loan origination and improving access to capital. CMT Digital's investment is seen as a strategic move to expand automation and liquidity in small business financing.

What Comes Next

Newity plans to announce its blockchain strategy in Q1 2026. The firm also intends to expand its hiring and technical capacity to support the next phase of growth.

The $11 million investment is expected to accelerate the development of Newity's blockchain-based platform, with a focus on creating a more efficient lending ecosystem. By combining AI and blockchain, Newity aims to improve transparency, speed, and accessibility in small business credit markets.