Fnality – the Fintech bringing together the safety and institutional quality of central bank money with the innovative functionality and resilience of blockchain technology – announced a £77.7m Series B funding round.
This investment round was reportedly led “by Goldman Sachs and BNP Paribas, with participation from DTCC, Euroclear, Nomura and WisdomTree.”
There were also additional investments “from Series A investors Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, ING, Lloyds Banking Group, Nasdaq Ventures, State Street, Sumitomo Mitsui Banking Corporation, and UBS.”
The culmination of this latest round “brings Fnality‘s total capital raised to £132.7m as it readies for the commencement of initial Sterling Fnality Payment System (£FnPS) operations in 2023, subject to regulatory approval.”
Fnality’s latest funding will be utilized “to continue progress towards the establishment of a world-first global liquidity management ecosystem that empowers new digital payment models in both wholesale financial markets and emerging tokenized asset markets.”
This encompasses key milestones “such as FnPS launches in key currencies including USD, strong ecosystem and network growth, and a compelling suite of use cases that will transform payments, settlement, and collateral management in global markets.”
Several landmark proofs of concept “have already demonstrated many of these capabilities, including for real-time settlement of tokenized securities, real-time cross-border FX swaps, and real-time repo transactions, each of which evidences the potential inherent in leveraging distributed ledger technology (DLT) to facilitate traditional financial activity and achieve faster, safer and more efficient exchange of value in global wholesale markets.”
The successful execution of such activity will “result in the mutually beneficial use of innovative technology to streamline processes, reduce costs, and ensure regulatory compliance while offering new products and access to new markets.”
As a growing industry-backed consortium “with both substantial digital assets pedigree and longstanding engagement with key central banks and regulators, Fnality is well placed to sit at the intersection of these converging markets, empowering both sides in the process.”
Rhomaios Ram, CEO of Fnality International, comments:
“Our Series B funding round represents the financial sector’s desire for a central bank money backed blockchain-based settlement solution that bridges the gap between traditional finance (TradFi) and decentralised finance (DeFi) in wholesale markets. Each Fnality Payment System utilises DLT to provide a 24/7 payment rail with the ability to reduce settlement cycles to real-time, while significantly improving intraday liquidity management and marking significant innovation in the speed, functionality, and resilience of wholesale payments.”
Frank La Salla, President, CEO and Director at DTCC, comments:
“As the worlds of TradFi and DeFi converge, DTCC is committed to partnering with industry participants, regulators and other stakeholders to help introduce the standards and governance needed to accelerate ecosystem growth while ensuring the highest levels of market safety and stability. Our investment in Fnality builds upon our agreement to acquire Securrency and will help foster new digital payment rails that will be essential for establishing a robust digital infrastructure, enabling interoperability and driving adoption of digital assets.”