Fnality International secures £77.7 million in Series B financing.

Fnality International, a fintech specializing in the security and institutional quality of central bank money, has secured £77.7 million (US$96.4 million) in Series B funding. By utilizing blockchain technology, Fnality operates a global liquidity management ecosystem, facilitating new payment models for transactions in wholesale financial markets and emerging tokenized asset markets.

The latest funding round, led by banking giants Goldman Sachs and BNP Paribas, also saw significant investment from DTCC, WisdomTree, Nomura, and Euroclear. Previous investors from Fnality’s 2019 Series A round, including Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, ING, Lloyds Banking Group, Nasdaq Ventures, State Street, Sumitomo Mitsui Banking Corporation, and UBS, also participated.

This funding brings Fnality’s total raised capital to £132.7 million (US$164.5 million) and will be utilized to support the establishment of the fintech’s global liquidity management ecosystem. Additionally, it will help prepare Fnality for the launch of its Sterling Fnality Payment System (FnPS) operations in 2023. FnPS, approved by the UK’s Payment System Regulator and Bank of England, serves as an official means to utilize a central bank digital currency (CBDC) asset for wholesale payments with near-instant settlement.

FnPS is set to launch later this year in various key currencies, including USD, with strong ecosystem and network growth observed since its inception. Proof-of-concept demonstrations have showcased FnPS’ capabilities, such as real-time settlement of tokenized securities, cross-border FX swaps, and repo transactions.

Fnality CEO Rhomaios Ram commented, “Our Series B funding round signifies the financial sector’s demand for a central bank money-backed blockchain-based settlement solution bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi) in wholesale markets. Each Fnality Payment System uses DLT to provide a 24/7 payment rail, reducing settlement cycles to real-time and significantly enhancing intraday liquidity management, marking a notable innovation in the speed, functionality, and resilience of wholesale payments.”