FinTechInvestment

Blockchain FinTech Fnality has raised £77.7 million in a Series B funding round.

Fnality says it brings together the safety and institutional quality of central bank money with the innovative functionality and resilience of blockchain technology.

The round was 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.  

It takes 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 utilised to continue progress towards the establishment of a global liquidity management ecosystem that empowers new digital payment models in both wholesale financial markets and emerging tokenised asset markets. 

The use-cases could transform payments, settlement and collateral management in global markets. The company says several landmark proofs of concept have already been demonstrated, including for real-time settlement of tokenised securities, real-time cross-border FX swaps, and real-time repo transactions. 

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“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,” said Rhomaios Ram, CEO.

“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.”

Mathew McDermott, global head of digital assets at Goldman Sachs, added: “Fnality’s solution is a key enabler for the digital asset ecosystem and the company is well-positioned to be at the forefront of payment innovations and institutional adoption of DLT. 

“Fnality’s application of blockchain technology offers a resilient way for institutions to use central bank funds across a wide set of potential use cases, including instantaneous, cross-border, cross-currency payments, collateral mobility, and security transactions. 

“We are pleased with our investment and are looking forward to the transformative impact Fnality brings.”

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