Newity, a fintech focused on lending infrastructure, has landed an $11 million strategic investment to expand how small businesses access capital using AI and blockchain technology. The funding round, led by CMT Digital, is framed as a step toward solving persistent problems in small business finance: slow origination, limited liquidity, and a multi-hundred-billion-dollar funding gap.

Why This Matters

There’s a massive unmet need in the small business credit market. Small businesses make up almost all firms in the U.S. and employ a large share of the workforce, yet they face an estimated $350 billion annual shortfall in funding. Traditional lenders move slowly. Processes are manual, paperwork heavy, and capital often sits idle. Newity’s pitch is that automation and digital finance can speed decisions and recycle capital faster.

The $11M injection is earmarked for two major expansions: scaling Newity’s AI-driven underwriting, and building infrastructure that connects small business credit with blockchain-accessible capital markets. This means transforming loans into digital, tradable assets and opening access beyond banks to institutional and blockchain-native investors.

What Newity Has Built So Far

Newity’s platform has already helped tens of thousands of businesses access financing. The company reports more than $12 billion in SBA loan volume facilitated for over 125,000 businesses. Their tech streamlines underwriting by automating document handling and credit evaluation. Growth Term Loans, a product extension, is part of its broader effort to serve a range of small enterprises.

The planned enhancements build on that foundation. AI is central to fast credit decisions, and blockchain is positioned to bring liquidity to traditionally illiquid small business loan assets. If successful, this could mean quicker approvals for borrowers and diversified access points for capital providers.

AI First, Blockchain Next

Newity describes its strategy as reinventing financial infrastructure, not just incrementally improving existing systems. That distinction matters because small business lending hasn’t seen meaningful structural change in years. AI holds promise for faster risk assessment and more consistent underwriting decisions. Blockchain promises to make credit assets more fungible and transparent.

This combination isn’t yet mainstream. Adoption of blockchain in regulated finance requires careful alignment with compliance standards and legacy systems. But by building both the AI layer and the on-chain facilities, Newity is positioning itself at the intersection of two powerful trends in financial technology.

What Comes Next

The immediate focus is expanding the platform’s capacity and market reach. Scaling AI underwriting should reduce friction for borrowers and free up internal teams to guide more applications efficiently. The blockchain infrastructure work aims to create a pipeline for small business credit into broader markets, potentially unlocking new types of liquidity.

For fintech founders and builders, this move shows a clear belief that digital assets and AI will play larger roles in real-world finance. It also highlights a concrete problem space — small business lending — where innovation could have measurable impact.

Key takeaways for fintech startups

• Newity raised $11M to scale AI underwriting and build blockchain capital market infrastructure for small business credit.

• Small business lending suffers from slow origination and a large funding gap that digital finance can help address.

• AI can speed credit decisions while blockchain can make loan assets more tradable and liquid.

• Execution will require careful attention to compliance and system integration.

• This trend points to more digital infrastructure plays in real-world finance.

If you want support shaping these kinds of infrastructure narratives for your fintech or navigating AI and blockchain in regulated finance, Your Fintech Story can help with strategy, messaging, and storytelling grounded in real outcomes.