Galaxy Digital Backs Fence to Automate $6 Trillion Asset-Backed Finance Market

Galaxy Digital, led by Mike Novogratz, has spearheaded a $20 million investment in Fence, a fintech firm designed to overhaul the back-end operations of the $6 trillion asset-backed finance market. The funding round also saw participation from Parafi Capital and Crane Ventures. The structured credit market has long been plagued by fragmented operational layers, often relying on manual processes involving PDFs, emails, and spreadsheets to track loan pools and verify collateral. Fence seeks to replace these legacy systems with a unified digital infrastructure that provides real-time visibility into asset performance, allowing lenders to monitor cash flows continuously. Rather than focusing on consumer-facing tokens, Fence utilizes blockchain as 'back-end plumbing.' By employing smart contracts and APIs, the company automates the release of cash and the verification of deal terms, significantly reducing the time required for loan data checks and payment clearing. The company currently oversees approximately $1.5 billion in assets and has collaborated with major institutional players, including BlackRock, Fortress, and BBVA. In its work with BBVA, Fence reported a reduction in operational overhead and lower funding costs for borrowers. The new capital will be used to expand Fence's U.S. operations and further develop its product suite. By reducing onboarding times from months to weeks, the firm aims to increase liquidity and efficiency within the broader capital markets.