Startup Fence takes aim at back end of $6 trillion credit market
Startup Fence uses blockchain technology and tokenization to automate processes in the $6 trillion credit market. Many asset managers still rely on manual workflows, including spreadsheets, PDFs, and email, which slow transactions and limit visibility into asset backing investments. Fence aims to replace these processes with a single system that updates data in real time. Juan Montero, co-founder and CEO of Fence, explained that lenders can now monitor loan performance and cash flows continuously instead of relying on periodic reports. The company has successfully implemented this in deals with BBVA, reducing funding costs for borrowers and operational work while tracking large volumes of loans. Fence uses blockchain less as a front-end product and more as back-end plumbing, employing smart contracts to manage cash, collateral, and deal rules. It can tokenize lender positions in financing vehicles and underlying loans or invoices, allowing investors to transfer positions, borrow against them, or receive payments automatically if ownership changes. The company oversees about $1.5 billion in assets across its platform, working with firms like BlackRock and Fortress. Fence can onboard new deals in weeks, compared with months under standard processes. The $20 million funding round, led by Galaxy Ventures, aims to expand in the U.S. and build out its product, betting that faster data and fewer manual steps can reshape how credit markets operate.
Source: CoinDesk