Galaxy Ventures, the venture capital arm of Galaxy Digital, has led a $20 million investment in Fence, a startup dedicated to transforming the $6 trillion asset-backed finance market. Fence utilizes blockchain technology and tokenization to streamline the operational aspects of structured credit deals, which often rely on manual workflows and fragmented systems.
The company's software aims to replace traditional methods, such as spreadsheets and email, with a single, real-time system. According to Juan Montero, co-founder and CEO of Fence, this approach can significantly reduce costs for major asset managers and provide lenders with continuous monitoring of loan performance and cash flows. Fence has already demonstrated its potential in deals with BBVA, one of Spain's largest banks, and currently oversees approximately $1.5 billion in assets across its platform, working with prominent firms like BlackRock and Fortress. The recent funding will facilitate the company's expansion in the U.S.
and further development of its product, with the goal of reshaping the credit market's backend operations through increased efficiency and automation.