Galaxy Digital Backs Blockchain Firm Fence to Modernize Asset-Backed Finance Infrastructure

Galaxy Digital Leads $20M Funding Round for Fence

Galaxy Digital has spearheaded a $20 million funding round for emerging blockchain company Fence, signaling continued institutional interest in financial infrastructure powered by distributed ledger technology.

Fence is focused on transforming the U.S. asset-backed finance sector—valued at roughly $6 trillion—by replacing outdated operational systems with streamlined, automated solutions.

Bringing Automation to Structured Credit Markets

The startup is developing software tailored to structured credit transactions, an area still heavily dependent on manual processes. Tasks such as monitoring loan portfolios, validating collateral, and facilitating interbank cash transfers are often handled through spreadsheets, PDFs, and email chains.

Fence’s platform consolidates these workflows into a unified system that updates in real time. This approach improves transparency, reduces administrative burden, and accelerates deal execution.

Blockchain as Financial Infrastructure

Rather than serving as a visible front-end feature, blockchain technology operates behind the scenes within Fence’s system. It functions as a secure and synchronized data layer, enhancing accuracy and auditability across complex financial transactions.

In addition, Fence enables tokenization of lender positions and, in certain cases, underlying financial assets such as loans and invoices. This capability introduces new flexibility in how these assets are managed and transferred.

Growing Adoption and Industry Partnerships

Fence reports that approximately $1.5 billion in assets are currently managed through its platform. The company has established working relationships with major financial institutions, including BlackRock, underscoring growing interest from traditional finance in blockchain-based solutions.

Expansion Plans Following Funding Round

The newly secured capital will support Fence’s product development and broader market expansion. According to the company, the focus will be on enhancing platform capabilities and scaling adoption among institutional participants in structured finance.

Market Context

Shares of Galaxy Digital (NASDAQ: GLXY) have climbed 73% over the past year, recently trading at $26.36 per share. The firm’s involvement in this funding round aligns with its ongoing strategy to support infrastructure projects at the intersection of blockchain and traditional finance.