Galaxy Digital Leads $20M Funding for Fence to Modernize the $6T Credit Market with Blockchain

ChainCatcher reports that Galaxy Digital led a $20 million funding round in fintech company Fence, with Parafi Capital and Crane Ventures also participating. Fence plans to transform the back-office processes of the $6 trillion asset-backed financing market using blockchain, smart contracts, and tokenization technologies. The proceeds from this round will primarily support Fence’s expansion in the U.S. market and product development. According to the report, a large volume of structured credit transactions still rely on manual processes such as Excel, PDFs, and email for loan tracking, collateral verification, and cash flow handling—resulting in low efficiency and limited transparency. Fence aims to address this by implementing a unified system that enables real-time data updates and automated settlement. The company uses APIs to acquire loan data and deploys smart contracts to automatically execute payments and cash flow distributions once predefined conditions are met. Additionally, Fence can tokenize loan positions within financing vehicles, allowing investors to transfer their positions, use them as collateral for financing, or automatically receive payments. Currently, Fence’s platform manages approximately $1.5 billion in assets and partners with institutions including BBVA, BlackRock, and Fortress Investment Group. The company states that, compared to traditional models that take months to onboard new transactions, its system can complete the process in just weeks.