Coinspeaker
Fintech Startup Fnality Raises $95M in Funding Led by Goldman and BNP Paribas
Fnality, a fintech firm focused on building tokenized versions of major currencies collateralized by cash held at central banks, has successfully secured $95 million in its Series B funding round, with major financial institutions like Goldman Sachs Group Inc (NYSE: GS) and BNP Paribas SA (EPA: BNP) leading the investment.
Fnality Funding and Key Participants
The investment also had participation from key players such as DTCC, Euroclear, Nomura, and WisdomTree. Notably, several banks that previously supported Fnality’s $63 million fundraise in 2019 have also reaffirmed their commitment to the project. These institutions include Banco Santander SA (BME: SAN), BNY Mellon, Barclays Plc (LON: BARC), Lloyds Banking Group Plc (LON: LLOY), and UBS Group AG (SWX: UBSG).
With the recently secured Series B funding, Fnality is poised to continue its pioneering work in the tokenization of fiat currencies backed by Central Bank cash. The support from leading financial institutions reaffirms the industry’s recognition of Fnality’s role as a catalyst in bridging the gap between traditional finance and the emerging decentralized finance landscape.
Tokenization of traditional finance assets on permissioned or public blockchains has emerged as a hot topic in the financial industry. Fnality is a pioneer in bringing cash onto the blockchain to achieve Delivery versus Payment (DvP) in wholesale banking through the use of shared ledgers.
Rhomaios Ram, CEO of Fnality International, emphasized the importance of the Series B funding, stating:
“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 decentralized finance (DeFi) in wholesale markets.”
Goldman Sachs head of digital assets, Mathew McDermott, further emphasized Fnality’s role as a “key enabler” in the growing trend of tokenization. He highlighted Fnality’s application of blockchain technology as a resilient solution for institutions, enabling them to utilize central bank funds for various use cases, including instantaneous cross-border payments, collateral mobility, and security transactions.
Fnality’s Path to Tokenization
Fnality first gained attention as a consortium of banks, led by UBS, exploring the integration of blockchain technology and tokenized assets to settle trades. Initially known as the Utility Settlement Coin (USC) project, it faced regulatory delays in its pursuit of approval.
However, Fnality modified its strategy in response to the changing regulatory landscape. When the Bank of England (BoE) announced in April of the following year that innovators could gain access to central bank funds through omnibus accounts, Fnality applied immediately. The firm completed a proof-of-concept for issuing a tokenized security on the Ethereum blockchain in February 2022, with Fnality handling the payment aspect of the process.
The Fnality funding success is a significant step forward in its mission to transform wholesale banking through the tokenization of major currencies. As the fintech landscape evolves, Fnality’s innovative approach to blockchain-based settlement solutions is poised to shape the future of financial transactions.
Fintech Startup Fnality Raises $95M in Funding Led by Goldman and BNP Paribas
