Friday 17th November, 2023
UK-based blockchain-based wholesale payments firm Fnality has raised USD 95 million in a funding round led by Goldman Sachs.
The company aims to streamline financial market transactions by bridging the gap between traditional and digital finance. According to Reuters, the raised capital will be allocated to the establishment of a globally accessible liquidity management network, catering to both wholesale financial markets and emerging tokenised asset markets.
Fnality intends to deploy this network to facilitate new digital payment models on a continuous basis.
Fnality's application of blockchain technology aims to provide institutions with a robust method to use central bank funds across various scenarios, including instantaneous cross-border payments, collateral management, and security transactions.
In addition to Goldman Sachs and BNP Paribas, the funding round saw continued support from investors such as Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, ING, Lloyds Banking Group, Nasdaq Ventures, State Street, Sumitomo Mitsui Banking Corporation, and UBS.
Founded in 2019, Fnality is developing a series of regulated, DLT-based wholesale payment systems in key jurisdictions, each overseen by its home central bank. In each Fnality Payment System (FnPS), participants use settlement balances in an account directly at the central bank to make wholesale payments in real-time. These settlement balances are bankruptcy remote and backed 1-to-1 by central bank money in the relevant currency. FnPS offers banks a faster, safer, and more resilient system for managing digital payments, and supports the growing industry adoption of tokenised assets and marketplaces.