A recent $20 million funding round, spearheaded by Galaxy Digital, is set to transform the $6 trillion asset-backed finance market by integrating blockchain technology to streamline operations. Fence, the recipient of the funding, is developing software to manage the operational aspects of structured credit deals, an area that has traditionally relied on manual workflows and fragmented systems.
The startup's platform utilizes real-time data updates, enabling lenders to continuously monitor loan performance and cash flows, rather than relying on periodic reports. This approach has been shown to reduce costs for major asset managers, as evidenced by Fence's collaboration with BBVA, which oversaw $800 billion in assets. By utilizing blockchain as a back-end solution, Fence aims to replace outdated processes with a unified system, thereby increasing efficiency and reducing costs.
The company's technology has already been successfully implemented, with approximately $1.5 billion in assets currently being managed across its platform, and partnerships with prominent firms such as BlackRock and Fortress.