In a significant move to transform the $6 trillion asset-backed finance market, Fence has raised $20 million in a funding round led by Galaxy Ventures, with participation from Parafi Capital and Crane Ventures. This investment will fuel Fence's mission to overhaul the operational layer of structured credit deals, which currently relies heavily on manual workflows, spreadsheets, and outdated systems. By harnessing the power of blockchain technology, Fence aims to create a unified platform that streamlines data management, tracks loan performance, and verifies collateral in real-time, thereby reducing costs and increasing visibility for investors. The company's approach has already yielded promising results in partnerships with major financial institutions, such as BBVA, where it has successfully lowered funding costs for borrowers and minimized operational work.
Fence's use of blockchain is focused on back-end infrastructure, utilizing smart contracts to manage cash, collateral, and deal terms, rather than promoting tokens or crypto wallets. With this funding, Fence plans to expand its presence in the US market and further develop its product, poised to reshape the credit market landscape by leveraging faster data processing and reduced manual steps.