London-based blockchain payments company Fnality has successfully secured $136 million in a Series C funding round, receiving backing from some of the most prominent financial institutions worldwide. The funding was led by Bank of America, Citi, KBC Group, Temasek, Tradeweb, and WisdomTree, with notable participation from returning investors such as Goldman Sachs, Santander, Barclays, and UBS. This significant financial backing was announced by the company on Tuesday.
Fnality’s CEO, Michelle Neal, emphasized that the completion of the Series C funding reflects a collective understanding that the future of finance necessitates a new structural approach. Neal highlighted that the company’s blockchain-based settlement systems provide around-the-clock payment capabilities, real-time settlements, and improved liquidity, thereby transforming payment processes in the financial sector.
Last year, Fnality debuted its sterling-denominated Fnality Payment System in the United Kingdom, aiming to revamp wholesale payments through a blockchain-centric infrastructure backed by central bank reserves. With this new capital infusion, Fnality is set to expand its services into the US dollar and euro markets, pending necessary regulatory approvals.
Fnality leverages distributed ledger technology to streamline institutional settlements, thereby facilitating real-time repurchase agreements, tokenized securities settlements, and cross-currency payments. The overarching goal is to integrate traditional finance with tokenized markets, enhancing liquidity while mitigating settlement risks.
WisdomTree CEO Jonathan Steinberg described Fnality’s platform as a “critical foundation” for the tokenized finance landscape, underscoring the company’s ambition to establish a direct connection to the lucrative and fast-evolving tokenized markets. Similarly, Deepak Mehra, Citi’s head of digital strategy, noted that Fnality’s offerings align with the bank’s vision to create more efficient and interoperable payment systems for digital assets.
Earlier in 2023, Fnality raised $95 million in a funding round led by Goldman Sachs and BNP Paribas, attracting participation from Euroclear, DTCC, WisdomTree, and existing investor Nomura. The company’s recent funding drive occurs against the backdrop of increasing interest in crypto payment frameworks.
Recently, Google introduced an open-source payment protocol designed for AI applications, supporting stablecoin transactions in partnership with Coinbase, Salesforce, American Express, and over 60 other collaborators. This initiative aims to integrate traditional payment systems with emerging crypto solutions, reflecting the rising prevalence of dollar-pegged stablecoins in AI-driven environments.
Moreover, SBI Shinsei Bank has joined hands with Singapore’s Partior and Japan’s DeCurret DCP to explore multicurrency tokenized deposits for cross-border transactions. The three entities have signed a memorandum of understanding to develop a blockchain framework that enables real-time clearing across several currencies, further illustrating the trend toward innovative financial solutions powered by blockchain technology.
