By Darren Parkin
FinTech safety and institutional specialist Fnality has revealed its blockchain Series B funding round has raised a remarkable £77.7m.
Led by Goldman Sachs and BNP Paribas, with participation from DTCC, Euroclear, Nomura and WisdomTree, the funding round also saw 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 £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 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 suite of use cases for payments, settlement, and collateral management in global markets.
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.
“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 of Fnality International.
“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 and Institutional Banking Global Markets at BNP Paribas, said: “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, praised Fnality’s solution as a key enabler for the digital asset ecosystem.
“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,” he explained.
“We are pleased with our investment and are looking forward to the transformative impact Fnality brings.”
Broadhaven acted as financial advisor to the round, and Sullivan & Cromwell acted as legal counsel.
