Galaxy Ventures, the venture arm of Galaxy Digital, led a $20 million funding round for Fence, a startup targeting the operational backbone of the $6 trillion asset-backed finance market. Parafi Capital and Crane Ventures also joined the raise. Fence builds software for the structured credit workflow, where many transactions still depend on spreadsheets, PDFs and email.
That back-office layer covers loan pool tracking, collateral verification and cash movement, and it is often split across multiple firms. The result is slow execution. Investors also get limited visibility into the assets supporting their positions.
Replacing fragmented credit operations with live data
Fence co-founder and CEO Juan Montero said the company is building a single system that updates data in real time instead of relying on fragmented reporting chains. In his description, lenders can monitor loan performance and cash flows on a continuous basis rather than waiting for periodic reports.
Fence said the model can reduce costs for large asset managers. In deals involving BBVA, one of Spain’s largest banks with $800 billion in assets under supervision, the company reported lower funding costs for borrowers and less operational work while maintaining ongoing tracking across large loan volumes.
Blockchain as infrastructure, not the sales pitch
Fence is not presenting itself to banks and asset managers as a token or wallet product. Its blockchain use sits in the background. Smart contracts are used to manage cash, collateral and the rules attached to each deal. Montero said that in a standard financing facility, lenders may wait days for loan data checks, report delivery and payment settlement; Fence instead pulls information through APIs, runs software checks and releases cash through smart contracts once terms are satisfied.
The company can also tokenize lender positions in financing vehicles and, in some cases, the underlying loans or invoices. That setup can let investors transfer positions, borrow against them or receive payments automatically after ownership changes. Montero added that tokenization is only applied where it creates clear value.
About $1.5 billion already runs across the platform
Montero said Fence does not want to be seen primarily as a blockchain company, but as infrastructure for capital markets. The company said it now oversees roughly $1.5 billion in assets on its platform and works with firms including BlackRock and Fortress. New deals can be onboarded in weeks, according to the company, compared with months under standard processes.
The fresh capital will be used to expand in the U.S. and continue product development. Fence is betting that faster data handling and fewer manual steps can change how credit markets operate behind the scenes.