Blockchain financial company Fence completes $20 million funding, led by Galaxy Digital

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ChainCatcher reports, citing CoinDesk, that Galaxy Digital led a $20 million funding round for fintech company Fence, with participation from Parafi Capital and Crane Ventures. Fence plans to use blockchain, smart contracts, and tokenization technology to revamp the backend processes of the $6 trillion asset-backed finance (Asset-Backed Finance) market.

The round will mainly be used for Fence’s expansion in the U.S. market and product development. The report says that many structured credit transactions still rely on manual processes such as Excel, PDFs, and emails to complete loan tracking, collateral validation, and cash-flow processing, resulting in low efficiency and limited transparency. Fence hopes to enable real-time data updates and automated settlement through a unified system.

According to the introduction, Fence obtains loan data via API and uses smart contracts to automatically execute payments and cash-flow allocations once conditions are met. In addition, the company can tokenize loan shares within financing vehicles, allowing investors to transfer positions, collateralize financing, or automatically receive payments.

At present, the Fence platform manages approximately $1.5 billion in assets, and partner institutions include BBVA, BlackRock, and Fortress Investment Group. The company said that compared with the processing cycle of several months under traditional models, its system can onboard new transactions within weeks.

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