Galaxy Ventures, the venture capital arm of Galaxy Digital, has led a $20 million funding round for Fence, a company developing software to streamline the operational aspects of structured credit deals. This investment aims to transform the $6 trillion asset-backed finance market, which still heavily relies on manual workflows.
The funding round, which also included investments from Parafi Capital and Crane Ventures, will support Fence's mission to create a unified system for handling the operational layer of these deals, replacing traditional methods that often involve spreadsheets, PDFs, and email. According to Juan Montero, co-founder and CEO of Fence, the company's platform updates data in real-time, enabling lenders to continuously monitor loan performance and cash flows. This approach has the potential to reduce costs for major asset managers and has already shown promising results in deals with BBVA, one of Spain's largest banks.
Fence utilizes blockchain technology as a back-end solution, employing smart contracts to manage cash, collateral, and deal terms. The company's goal is to create a more efficient and automated process, allowing for faster transactions and greater visibility for investors. With this investment, Fence plans to expand its presence in the U.S. and further develop its product, with the ultimate goal of reshaping the credit markets through enhanced data processing and reduced manual steps.