Fnality Raises £77.7M in Funding for Blockchain-Powered Wholesale Payments Revolution
Fnality International, the London-based fintech at the forefront of marrying the security of central bank money with the innovation of blockchain technology, has successfully concluded its Series B funding round, raising an impressive £77.7 million. This latest funding, spearheaded by financial giants Goldman Sachs and BNP Paribas, with participation from esteemed entities like DTCC, Euroclear, and WisdomTree, marks a pivotal moment for Fnality, bringing their total capital raised to an impressive £132.7 million.
The funding, which includes additional investments from Series A backers such as Banco Santander, BNY Mellon, and UBS, positions Fnality strategically for the imminent launch of the Sterling Fnality Payment System (£FnPS) in 2023, contingent upon regulatory approval.
Fnality’s vision extends beyond the conventional boundaries of financial transactions. The infusion of these funds will propel the development of a groundbreaking global liquidity management ecosystem. This ecosystem is poised to revolutionize digital payment models across wholesale financial markets and emerging tokenized asset markets. Among the upcoming milestones are FnPS launches in key currencies, including the USD, fostering ecosystem and network growth, and presenting a suite of use cases that promise to reshape payments, settlement processes, and collateral management on a global scale.
Already, Fnality has showcased the transformative potential of its technology through landmark proofs of concept. These include real-time settlement of tokenized securities, cross-border FX swaps, and repo transactions. These successful demonstrations underscore the intrinsic power of distributed ledger technology (DLT) in facilitating traditional financial activities, ensuring faster, safer, and more efficient exchange of value in global wholesale markets.
Fnality’s unique position as an industry-backed consortium, boasting both a substantial digital assets pedigree and long-standing collaborations with key central banks and regulators, allows it to serve as a linchpin at the intersection of converging markets. This places Fnality in an optimal position to empower both traditional finance (TradFi) and decentralized finance (DeFi) in wholesale markets, as stated by Rhomaios Ram, the CEO of Fnality International.
Ram emphasized that the Series B funding round is a testament to the financial sector’s appetite for a blockchain-based settlement solution backed by central bank money. The Fnality Payment System, utilizing DLT, provides a 24/7 payment rail with the capability to reduce settlement cycles to real-time, ushering in a new era of innovation in the speed, functionality, and resilience of wholesale payments.
Leaders from investing organizations echoed their commitment to fostering innovation in the financial landscape. Frank La Salla, President, CEO, and Director at DTCC, emphasized the importance of introducing standards and governance to support the convergence of traditional finance and decentralized finance. Similarly, Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, sees Fnality’s solution as a key enabler for the digital asset ecosystem, offering institutions resilient ways to leverage central bank funds across diverse use cases.