Galaxy Digital Leads $20 Million Investment Round in Fence to Transform $6 Trillion Credit Market Infrastructure Using Blockchain

BlockBeats News, April 29. Galaxy Digital led a $20 million financing round for the fintech company Fence, with participation from Parafi Capital and Crane Ventures. Fence plans to leverage blockchain, smart contracts, and tokenization technology to transform the backend processes of the $6 trillion Asset-Backed Finance market.

This funding round will be mainly used for Fence's expansion in the U.S. market and product development. According to reports, a large number of structured credit transactions still rely on manual processes such as Excel, PDFs, and emails to complete loan tracking, collateral verification, and cash flow processing, resulting in low efficiency and limited transparency. Fence aims to achieve real-time data updates and automated settlements through a unified system.

It is introduced that Fence obtains loan data through APIs and utilizes smart contracts to automatically execute payments and cash flow distribution upon meeting conditions. Additionally, the company can tokenize loan shares in the financing vehicle, enabling investors to transfer positions, collateralize financing, or automatically receive payments.

Currently, the Fence platform manages assets of approximately $1.5 billion, with partner institutions including BBVA, BlackRock, and Fortress Investment Group. The company stated that compared to the traditional processing cycle of several months, its system can onboard new transactions within a few weeks.