Fence has secured $20 million from Galaxy Digital to tokenize the $6 trillion asset-backed financial market, which still operates on manual, traditional rails.
Fence has secured a $20 million investment led by Mike Novogratz’s Galaxy Digital to bring blockchain infrastructure to the roughly $6 trillion U.S. asset-backed finance market, in one of the clearest recent bets on the tokenization of past credit plumbing.
According to Galaxy Digital’s investment disclosure, Fence is “leveraging blockchain behind the scenes to automate and improve” asset-backed lending workflows, which currently remain “labor-intensive and highly manual,” positioning the company as a back-office rail provider rather than a consumer-facing crypto platform.
Fence said the system can tokenize a lender’s position in a loan product, and in some cases the underlying loan or invoice itself, effectively turning traditionally illiquid receivables into programmable and tradable receivables.
Galaxy’s RWA push meets credit market automation
Fence reports that the company currently manages approximately $1.5 billion in assets on its platform and works with major financial institutions such as BlackRock to help streamline the management of complex structured credit transactions.
The company said in a statement that the new $20 million will support “growth and product development” as it deepens its integration with banks, asset managers and specialty finance shops looking to streamline operations and settle private credit transactions faster.
Galaxy Digital framed the deal as part of a broader push into tokenized real-world assets, following moves such as a planned multi-chain tokenized money market fund, designed to rank alongside products such as BlackRock’s roughly $2.2 billion BUIDL fund and Franklin Templeton’s BENJI in the emerging on-chain yield stack.
The funding for Fence also comes as the tokenization narrative accelerates across private markets, which total more than $270 trillion worldwide, with research cited by RWA tracking platform RWA.xyz predicting that more than $16 trillion in assets could be tokenized by 2030 if implementation becomes more complex.
For crypto-native investors, Galaxy’s role as a key backer shows that large digital asset companies continue to see value not only in tokenized funds and government bonds, but also in the infrastructure that quietly turns real-world exposures like leases, bills, and car loans into on-chain primitives. This argument is echoed in a recent crypto.news article about how institutional investor flows are gravitating toward yield generation. Equipment linked to the real world.
Previous crypto.news coverage has highlighted how the macro environment and credit conditions are permeating digital asset markets, with articles on the Middle East-driven energy shock and articles on risk sentiment, but that backdrop makes Galaxy’s bet on quiet, regulated, yield-focused tokenized asset-backed finance look less like hype and more like infrastructure for the next cycle of on-chain credit.
