Mike Novogratz's Galaxy Digital has led a $20 million investment round in Fence, a startup aiming to overhaul the $6 trillion asset-backed finance market. The round also included ParaFi Capital and Crane Ventures.
Fence is building software to handle the operational layer of structured credit deals-tracking loan pools, verifying collateral, and moving cash-processes that many asset managers still run on spreadsheets, PDFs, and email.
CEO Juan Montero said the platform replaces fragmented manual workflows with a single system that updates data in real time, allowing lenders to continuously monitor loan performance and cash flows.
In deals with Spain's BBVA, which oversees $800 billion in assets, Fence reported lower funding costs and reduced operational work.
The company uses blockchain primarily as back-end plumbing, employing smart contracts to manage cash, collateral, and deal rules without pitching tokens or crypto wallets to banks.
Fence can also tokenize lender positions and underlying loans, enabling transfers, borrowing, and automatic payments where it adds value.
“We don't want to be seen as a blockchain company. We’re building the infrastructure for the capital markets,” Montero said.
The platform currently oversees about $1.5 billion in assets, working with BlackRock and Fortress. New deals can be onboarded in weeks versus months.
The funding will support U.S. expansion and product development.