Fnality International, a blockchain payments startup headquartered in the UK, has snapped $95 million (£77.7 million) in a Series B funding round. This round brings the total investment secured by Fnality to £132.7 million.
The round was led by Goldman Sachs and BNP Paribas, with participation from DTCC, Euroclear, Nomura and WisdomTree. There were additional investments from existing investors Banco Santander that backed Open Cosmos, BNY Mellon, Barclays, CIBC, Commerzbank, ING, Lloyds Banking Group, Nasdaq Ventures, State Street, Sumitomo Mitsui Banking Corporation, and UBS.
Plans ahead for Fnality
The funds will be used to create what it claims to be the world’s first global liquidity management ecosystem for new digital payment models and tokenised asset markets, and launch the Sterling Fnality Payment System in 2023, subject to approval by the Bank of England.
Simplifies cross-currency payments
Founded in 2019 and led by CEO Rhomaios Ram, Fnality works on distributed Financial Market Infrastructures (dFMIs), specifically blockchain-based payments. Fnality claims that by harnessing distributed ledger technology (DLT), its digital payment network for wholesale financial markets and emerging tokenized asset markets is set to enhance efficiency, cut costs, and guarantee regulatory compliance. This initiative also opens avenues for new products and access to previously untapped markets.
Fnality envisions its digital pound as part of a diversified currency portfolio in collaboration with respective local central banks. It is bullish regarding the potential launch of a USD token, shifting focus from its earlier bullish stance on the euro.
Rhomaios Ram, CEO of Fnality International, commented: “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.”
Frank La Salla, President, CEO and Director at DTCC, added: “As the worlds of TradFi and DeFi converge, DTCC is committed to partnering with industry participants, regulators and other stakeholders to help introduce the standards and governance needed to accelerate ecosystem growth while ensuring the highest levels of market safety and stability. Our investment in Fnality builds upon our agreement to acquire Securrency and will help foster new digital payment rails that will be essential for establishing a robust digital infrastructure, enabling interoperability and driving adoption of digital assets.”
Olivier Osty, Head of Corporate & Institutional Banking Global Markets at BNP Paribas, added: “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, comments: “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.”
