Ownera, a provider of tokenization interoperability networks based on the open FinP2P protocol, and Fnality, a financial market infrastructure bringing together the safety and institutional quality of central bank money with the functionality and resilience of blockchain technology, have announced a strategic partnership.
This collaboration aims to deliver seamless, secure, and “scalable interoperability between Fnality’s fully regulated Distributed Ledger Technology (DLT)-based payment systems and the broader tokenisation ecosystem.”
Through this partnership, institutions utilizing “an Ownera Router will now be able to offer their clients direct access to Fnality Payment System (FnPS) and its services, regardless of the tokenised assets they wish to trade or use as collateral.”
This applies to public and private ledgers “on which the assets are tokenized.”
This collaboration is set to “enhance the scalability of the fast-growing institutional tokenization ecosystem and increase liquidity in financial markets.”
By enabling streamlined and standardised access to the FnPS’ services and financial processes, this partnership “will drive greater efficiency and innovation across the industry.”
Ami Ben David, founder and CEO of Ownera said the need for the partnership emerged from their clients who want to access payments, repo and collateral mobility. David said that payment services are critical to the growth and scalability of the institutional tokensation market.
As noted in the update, Fnality is developing “a series of regulated DLT-based wholesale payment systems.”
Each system, known as Fnality Payment System (FnPS), is “supervised by its respective central bank. ”
Within an FnPS, participants utilize bankruptcy remote settlement balances “backed 1-to-1 by central bank money for instant wholesale payments.”
The launch of FnPSs in key jurisdictions will enable “real-time cross-currency payments and the secure atomic settlement of any delivery versus payment transactions around the clock.”
The credit quality of the central bank funds underpinning Fnality Payment Systems will provide “the missing ingredient for novel digital asset markets: institutional grade digital cash.”
In December 2023, the Sterling FnPS, previously recognized “by HM Treasury as a systemically important payment system, commenced controlled live payments.”
Joining a handful of other regulated payment systems in the UK, it “became the world’s first regulated DLT-based wholesale payment system, settling in digital central bank funds.”