Fnality has received a significant vote of confidence for the infrastructure of the financial system. The $136 million Series C round, spearheaded by major players from Wall Street and Europe, supports its objective to create a regulated settlement layer that links traditional finance (TradFi) markets with tokenized assets.
Summary
- Fnality secured $136m in a Series C funding round led by prominent Wall Street and European banks.
- The funding will enhance its regulated Sterling Payment System and extend its reach to additional currencies.
- Since 2019, the company has amassed over $280m in total funding.
As stated in a release on Sept. 23, London-based Fnality successfully raised this capital in a Series C funding round led by WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb.
This round also saw contributions from Santander, Goldman Sachs, UBS, Euroclear, and other existing investors, pushing Fnality’s total funding past $280 million since 2019. According to the statement, the new funds will help scale the operational capabilities of the Sterling Fnality Payment System, which was launched in late 2023 to facilitate large transactions in digital assets backed 1:1 by funds at the Bank of England.
Transitioning from pilots to plumbing: Fnality’s next steps
Fnality has stated that its immediate priority is to branch out into additional major currencies, provide tools for improved liquidity management, and foster interoperability with the expanding array of stablecoins and tokenized deposits.
The practical implementation of these efforts is already evident through the functioning Sterling Fnality Payment System. Since its inception, the system has facilitated various applications, such as the real-time settlement of tokenized securities through delivery versus payment, on-demand foreign exchange payment-versus-payment settlement, and real-time repo transactions, thus accelerating the progression towards more integrated and liquid capital markets.
“With 24/7 payment rails, real-time settlement, and improved liquidity management, we’re not only modernizing wholesale payments; we’re shaping a future that merges Decentralized Finance’s operational efficiency with Traditional Finance’s capital effectiveness. This investment propels our journey toward a financial market infrastructure that is more resilient, inclusive, and prepared for the hybrid future of global finance,” said Michelle Neal, CEO of Fnality International.
Bank of America’s Co-President Jim DeMare characterized the deal as part of a larger modernization initiative. He mentioned that the bank perceives Fnality’s settlement model as a means to streamline the institutional market framework, allowing trades to settle with greater expediency and efficiency while establishing a basis for scalable digital finance.
Fnality’s credibility stems from its regulatory standing. The HM Treasury
recognized the Sterling FnPS as a systemically important payment system prior to its launch of controlled live payments in December 2023.
This designation set the stage for it to become the world’s first regulated DLT-based wholesale payment system. Its shareholder roster includes Banco Santander, BNY Mellon, DTCC, Euroclear, Goldman Sachs, Nasdaq Ventures, and State Street, among others.
