Key takeaways:
- Global investment bank Goldman Sachs and French universal bank BNP Paribas have reportedly led a funding round for blockchain-based payments firm Fnality.
- The funding round raised £77.7 million ($95.09 million) and included participation from settlement houses Euroclear and Depository Trust and Clearing Corporation.
- The capital will be used to establish a global liquidity management network for new digital payment models and tokenized asset markets.
- Fnality aims to launch the Sterling Fnality Payment System in 2023, pending approval by the Bank of England.
- The blockchain technology allows institutions to utilize central bank funds for instantaneous cross-border payments and security transactions.
Global investment bank Goldman Sachs and French universal bank BNP Paribas have reportedly led a new funding round for Fnality, a blockchain-based wholesale payments firm. The funding round raised £77.7 million ($95.09 million), according to Reuters. In addition to Goldman Sachs and BNP Paribas, settlement houses Euroclear and Depository Trust and Clearing Corporation also participated in the fundraise. Other investors included global exchange-traded fund firm WisdomTree and Fnality’s existing investor Nomura. The new capital will be used to establish a round-the-clock global liquidity management network for new digital payment models in wholesale financial markets and emerging tokenized asset markets, according to Fnality. It will also pave the way for the initial launch of the Sterling Fnality Payment System in 2023, subject to approval by the Bank of England. Fnality’s blockchain technology application allows institutions to utilize central bank funds for various use cases, including instantaneous cross-border payments and security transactions, said Mathew McDermott, Goldman Sachs' global head of digital assets. Fnality was founded in 2019 as a blockchain project led by UBS, with the aim of building digital versions of major currencies for wholesale payments and transactions involving digital securities. The firm was initially launched under the Utility Settlement Coin (USC) project, which aimed to tokenize fiat currencies like the U.S. dollar or the euro on an Ethereum-based blockchain. Other global banks, such as JPMorgan, have also been exploring blockchain and tokenization. In November, JPMorgan launched a programmable payment feature on its JPM Coin platform, targeting institutional investors.
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