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Fnality Raises $136M to Expand Tokenized Settlement Network

Fnality

Major Institutions Back Series C

Fnality, the London-based blockchain payments company, has raised $136 million in a Series C round led by WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb. Returning backers included Goldman Sachs, Santander, Barclays, BNP Paribas, UBS, and other leading financial institutions. The fresh capital brings Fnality’s total funding since 2019 to over $280 million.

Fnality specializes in wholesale settlement systems tied directly to central bank reserves, providing a bridge between traditional finance and tokenized markets. The company’s sterling-denominated Fnality Payment System (£FnPS), launched in December 2023, enables banks to settle transactions in digital assets backed 1:1 by funds held at the Bank of England.

CEO Michelle Neal described the raise as proof of a shared conviction among leading market players that “the future of money demands a new foundation.” She added that Fnality’s blockchain-based settlement network offers 24/7 payment rails, real-time settlement, and liquidity enhancements that traditional systems lack.

Investor Takeaway

Fnality’s Series C reinforces the institutional push to integrate tokenized settlement systems into mainstream finance. Its central-bank-linked rails could become critical infrastructure for tokenized assets.

Expanding Into USD and EUR Settlement

With its new funding, Fnality plans to scale operations beyond sterling into U.S. dollar and euro markets, subject to regulatory approvals. The company will also build liquidity tools, onchain workflows, and interoperability with stablecoins and tokenized deposits. This expansion is designed to support the growing number of banks piloting tokenization projects, such as JPMorgan’s deposit token experiments and HSBC’s tokenized deposit services.

Fnality’s pitch is clear: provide a neutral, central-bank-money settlement layer that connects diverse tokenization initiatives. By anchoring transactions to reserves held at trusted central banks, the firm aims to address concerns about counterparty risk and fragmented liquidity in digital asset markets.

Industry executives view broad potential. WisdomTree CEO Jonathan Steinberg called Fnality’s network a “critical foundation for tokenized finance,” while Citi’s head of digital strategy Deepak Mehra said it aligns with Citi’s mission to build interoperable payment systems for digital assets.

Positioning in the Tokenization Race

The Series C highlights growing institutional momentum behind blockchain-based financial infrastructure. Global market operators and banks are investing heavily in tokenization pilots, from repo markets to equities and bond settlements. Fnality’s real-time settlement capability, backed by central bank funds, provides the credibility and regulatory alignment that institutions viewk.

In 2023, Fnality raised $95 million in a round led by Goldman Sachs and BNP Paribas, with support from Euroclear, DTCC, WisdomTree, and Nomura. An earlier $67 million round in 2019 supported development of the Utility Settlement Coin, the precursor to today’s Fnality platform. With the latest financing, the firm has more than doubled its capital base to pursue its cross-currency vision.

Competitors are also advancing. Last week, Google announced an open-source protocol allowing AI applications to transact using stablecoins, developed in collaboration with Coinbase, Salesforce, and American Express. Meanwhile, SBI Shinsei Bank partnered with Singapore’s Partior and Japan’s DeCurret DCP to explore multi-currency tokenized deposits. These moves reflect the accelerating race to connect traditional and digital finance through blockchain-based rails.

Investor Takeaway

Fnality’s backers include some of the largest global banks. If it secures regulatory approvals for USD and EUR systems, it could become the default infrastructure for tokenized bonds, equities, and repo markets.

What Comes Next for Fnality

Fnality’s roadmap includes expanding its settlement network across major currencies, securing interoperability with stablecoins and tokenized deposits, and developing liquidity management tools for institutions. The firm is also working toward additional regulatory approvals to scale in key jurisdictions.

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