Fnality raises £77.7M in series B funding led by Goldman Sachs

Fnality, a blockchain-based payment system, has secured £77.7m in a series B funding round, with backing from financial giants Goldman Sachs and BNP Paribas.  

This injection of funds is earmarked for a “world-first global liquidity management ecosystem”, that allows new digital payment models in both wholesale financial markets and emerging tokenised asset markets.  

With this latest round of funding, Fnality has now amassed a total capital of £132.7m, building upon its series A round that raised £55m in June 2019.  

The series B round also saw participation from DTCC, Euroclear, Nomura and WisdomTree.  Series A investors Banco Santander, BNY Mellon, Barclays and others also increased their commitments.  

Fnality, headquartered in the UK, has already showcased the capabilities of its technology through proofs of concept.  

These demonstrations include the settlement of tokenised securities, cross-border FX swaps and repo transactions. 

The platform’s proficiency in leveraging distributed ledger technology (DLT) highlights its potential to facilitate financial activity and achieve faster, safer and more efficient exchange of value in global wholesale markets.  

According to Fnality, the adoption of its technology is not only a leap forwards in efficiency but also promises to streamline processes, reduce costs and ensure regulatory compliance. While also offering new products and access to new markets.  

Rhomaios Ram, chief executive officer of Fnality International, emphasised the significance of this funding round. He said that it “represents the financial sector’s desire for a central bank money backed blockchain-based settlement solution that bridges the gap between traditional finance and decentralised finance in wholesale markets.” 

Mathew McDermott, global head of digital assets at Goldman Sachs, said: “Fnality’s application of blockchain technology offers a resilient way for institutions to use central bank funds across a wide set of potential use cases. These include instantaneous, cross-border, cross-currency payments, collateral mobility and security transactions.” 

Olivier Osty, head of corporate and institutional banking global markets at BNP Paribas, commented: “BNP Paribas’ investment in Fnality illustrates the bank’s continued commitment to exploring and supporting innovative solutions within the banking industry.” 

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Josh Poyser Josh Poyser is an editor at FinTech Intel. He has written about fintech for several years and appeared at FinTech Connect 2023 on the 'Unlocking Success: The Art of Fintech PR' panel.