Fnality, a FinTech bringing together the safety and institutional quality of central bank money with the innovative functionality and resilience of blockchain technology, announced a €89 million Series B funding round. This 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. The culmination of this latest round brings Fnality’s total capital raised to €152.1 million as it readies for the commencement of initial Sterling Fnality Payment System (£FnPS) operations in 2023, subject to regulatory approval.
Founded in 2019, Fnality’s latest funding will be utilised 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 tokenised 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.
Rhomaios Ram, CEO of Fnality International, said: “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.”
Several landmark proofs of concept have already demonstrated many of these capabilities, including for real-time settlement of tokenised 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.
Olivier Osty, Head of Corporate & Institutional Banking Global Markets at BNP Paribas, commented: “Collaborating with innovative companies is at the core of BNP Paribas Global Markets’ strategy and is a key pillar in remaining a meaningful partner to our clients. BNP Paribas’ investment in Fnality illustrates the bank’s continued commitment to exploring and supporting innovative solutions within the banking industry.”
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.”
