Galaxy Digital leads $20 million investment in Fence to overhaul back end of $6 trillion credit market

Startup Fence uses blockchain exertion and tokenization successful the inheritance to automate processes that galore plus managers inactive trust connected manual workflows.

Apr 29, 2026, 12:17 p.m.

A $20 cardinal backing circular led by Mike Novogratz’s Galaxy Digital (GLXY) is backing a propulsion to usage blockchain down the scenes to overhaul the $6 trillion asset-backed finance market, wherever galore deals inactive trust connected manual workflows.

The round, which included Parafi Capital and Crane Ventures, went to Fence, a startup gathering bundle to grip the operational furniture of structured recognition deals.

That furniture — from tracking indebtedness pools to verifying collateral and moving currency — is often fragmented crossed aggregate firms and inactive runs connected spreadsheets, PDFs and email. The setup tin dilatory transactions and permission investors with constricted visibility into the assets backing their investments.

Fence aims to regenerate those processes with a azygous strategy that updates information successful existent time, Juan Montero, co-founder and CEO of Fence, told CoinDesk successful an interview. Lenders tin show indebtedness show and currency flows continuously, alternatively than relying connected periodic reports, helium explained.

The institution says that attack tin chopped costs for large plus managers. In deals with BBVA, 1 of Spain's largest banks overseeing $800 cardinal successful assets, Fence reported little backing costs for borrowers and reduced operational work, portion tracking ample volumes of loans connected an ongoing basis.

Blockchain successful the background

Fence is utilizing blockchain little arsenic a front-end merchandise than arsenic back-end plumbing. The institution does not transportation banks and plus managers connected tokens oregon crypto wallets. Instead, it uses astute contracts down the scenes to negociate cash, collateral and the rules that govern these deals.

In a emblematic facility, lenders whitethorn hold days for indebtedness information to beryllium checked, reports to beryllium sent and payments to clear, Montero said. Fence pulls that accusation done APIs, runs checks successful bundle and uses astute contracts to merchandise currency erstwhile woody presumption are met, helium said.

The institution tin besides tokenize lender positions successful financing vehicles and, successful immoderate cases, the underlying loans oregon invoices. That tin let investors to transportation positions, get against them oregon person payments automatically if ownership changes. Still, Montero said tokenization is lone utilized wherever it adds value.

"We don't privation to beryllium seen arsenic a blockchain company. We’re gathering the infrastructure for the superior markets," Montero said. “Others digitize the paperwork. Fence rebuilt the plumbing."

The institution says it present oversees astir $1.5 cardinal successful assets crossed its platform, moving with firms including BlackRock and Fortress. It tin onboard caller deals successful weeks, compared with months nether modular processes.

The backing volition assistance the institution grow successful the U.S. and physique retired its product, Montero said, betting that faster information and less manual steps tin reshape however recognition markets run down the scenes.