In a significant move to transform the $6 trillion asset-backed finance market, Galaxy Ventures, the venture capital arm of Galaxy Digital, has led a $20 million funding round for Fence, a startup dedicated to streamlining the operational layer of structured credit deals. The round also saw participation from Parafi Capital and Crane Ventures.
Fence's software aims to replace fragmented and manual processes with a unified system, providing real-time updates and enhanced visibility for investors. By utilizing blockchain technology and tokenization in the background, Fence seeks to reduce costs and increase efficiency for major asset managers. The company has already reported successful collaborations with prominent institutions, such as BBVA, and currently oversees approximately $1.5 billion in assets across its platform.
With this new funding, Fence plans to expand its presence in the U.S. and further develop its product, focusing on reshaping the credit market's backend operations through faster data processing and reduced manual intervention.