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

April 29 — Galaxy Digital has led a $20 million financing round for fintech firm Fence, with participation from Parafi Capital and Crane Ventures. Fence plans to leverage blockchain, smart contracts and tokenization to overhaul backend processes in the $6 trillion asset-backed finance market. The funding will primarily support Fence’s U.S. market expansion and product development. Per reports, most structured credit transactions still rely on manual workflows — Excel, PDFs and emails — for loan tracking, collateral verification and cash flow processing, leading to low efficiency and limited transparency. Fence aims to deliver real-time data updates and automated settlements via a unified system. Fence pulls loan data via APIs and uses smart contracts to auto-execute payments and cash flow distributions when conditions are met. It also tokenizes loan shares in financing vehicles, enabling investors to transfer positions, collateralize debt or receive automated payments. Currently, Fence’s platform manages ~$1.5 billion in assets, with partner institutions including BBVA, BlackRock and Fortress Investment Group. The company notes its system can onboard new transactions in weeks, compared to the months-long cycle of traditional processes.