Fnality Lands $136m to Scale Blockchain-Based Bank Settlement

Fnality, the developer of tokenized versions of major currencies backed by central bank cash, has secured $136 million in a Series C round to scale its blockchain-based wholesale payment network.

The round of investment was led by WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb. Existing backers also took part, including Banco Santander, Barclays, BNP Paribas, DTCC, Euroclear, Goldman Sachs, ING, Nasdaq Ventures, State Street, and UBS.

Fnality’s settlement infrastructure, built on distributed ledger technology, enables sterling payments to be processed on-chain using central bank money.

The platform supports real-time trade settlement, delivery-versus-payment for digital securities, and payment-versus-payment in FX. For banks, this promises fewer intermediaries, faster settlement, and more efficient capital use. For example, a repo trade that usually takes a day could settle instantly, unlocking cash for other transactions.

The new capital will fund the rollout of systems in additional currencies, the development of liquidity management tools, and the settlement of tokenized assets such as securities and stablecoins.

It also marks a major step for Fnality in its bid to build a global settlement network powered by distributed ledger technology, connecting today’s wholesale markets with the growing ecosystem of institutional tokenized assets.

Jim DeMare, co-president of Bank of America, said:  “This partnership is an important milestone in the digitization of institutional markets. By embracing new technological solutions, we can modernize the market structure and build a foundation for institutions to operate with greater speed and efficiency."