Galaxy Ventures, the venture capital arm of Mike Novogratz's Galaxy Digital, has led a $20 million funding round in 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 by utilizing blockchain technology to replace manual workflows.
Fence's platform provides real-time data updates, enabling lenders to continuously monitor loan performance and cash flows, rather than relying on periodic reports. The company has successfully implemented its solution with major banks, such as BBVA, resulting in lower funding costs for borrowers and reduced operational work. Fence's approach focuses on using blockchain as a back-end infrastructure, rather than a front-end product, to manage cash, collateral, and deal terms. By automating these processes, Fence can significantly reduce transaction times and provide investors with increased visibility into their assets.
With this funding, Fence plans to expand its operations in the U.S. and further develop its product, with the goal of reshaping the credit market's underlying infrastructure.