Fnality raises $136M for blockchain wholesale payments

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By david

Fnality has secured substantial Series C funding totaling $136 million, marking a significant advancement in its mission to establish wholesale payment systems built on blockchain technology. This latest capital injection, co-led by prominent financial institutions including WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb, with participation from Goldman Sachs, UBS, and Barclays, underscores growing investor confidence in the potential of tokenized assets and distributed ledger technology for modernizing financial infrastructure.

The newly acquired funds are strategically allocated to facilitate Fnality’s expansion into new currency markets and to enhance its capabilities in settling tokenized assets. This includes the development of sophisticated liquidity management tools and the broadening of settlement options for digital securities and stablecoins. The company’s core offering is a platform that tokenizes major fiat currencies, backed by central bank reserves, enabling real-time transactions and robust settlement mechanisms such as “delivery versus payment” for digital securities and “payment versus payment” for foreign exchange operations.

Transforming Financial Settlements

Fnality’s innovative approach directly addresses long-standing inefficiencies within traditional financial systems. By leveraging blockchain, the company aims to reduce the reliance on intermediaries, thereby expediting settlement times and optimizing capital utilization for financial institutions. This operational enhancement is particularly crucial in the evolving landscape of digital assets, where seamless and secure transactions are paramount for widespread adoption and market integrity.

The company’s vision, as articulated by CEO Michelle Neal, centers on bridging the gap between established financial institutions and burgeoning decentralized markets, envisioning a “hybrid future of global finance.” Investors such as WisdomTree and Bank of America view their participation as integral to a broader global initiative to upgrade the financial plumbing required for the growing ecosystem of tokenized assets. This strategic investment is a testament to the industry’s shift towards embracing technological advancements that promise greater efficiency and interoperability.

Fnality’s previous funding rounds, including a $95.2 million raise in 2023 with participation from notable investors like Goldman Sachs, BNP Paribas, and DTCC, highlight a consistent trajectory of growth and development in its pursuit of revolutionizing wholesale payments. The ongoing support from major financial players indicates a clear market demand for the solutions Fnality is developing.

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