In a bid to revolutionize the $6 trillion asset-backed finance market, Galaxy Ventures, the venture capital arm of Galaxy Digital, has led a $20 million funding round in Fence, a startup focused on developing software for the operational layer of structured credit deals. This round also saw participation from Parafi Capital and Crane Ventures. Fence's software aims to replace fragmented, manual processes with a unified system, providing real-time updates and enhanced visibility for investors.
By utilizing blockchain technology and smart contracts in the background, Fence seeks to minimize costs and maximize efficiency for major asset managers. The company has already demonstrated the potential of its approach through collaborations with prominent institutions such as BBVA, resulting in reduced funding costs for borrowers and decreased operational workload. Fence's blockchain-based solution operates behind the scenes, using APIs and smart contracts to manage cash, collateral, and deal terms, thereby facilitating faster transactions and improved loan performance monitoring. With this investment, Fence plans to expand its presence in the U.S.
and further develop its product, with the goal of reshaping the credit market's operational landscape.