Fnality raises USD 95 million in a Goldman-led funding round

Wednesday 15 November 2023 12:20 CET | News

UK-based blockchain-based wholesale payments firm Fnality has raised USD 95 million in a funding round led by Goldman Sachs.


The funding, led by Goldman Sachs and BNP Paribas, included participation from other financial entities such as DTCC, Euroclear, Nomura, and WisdomTree. 

The company, pending approval from the Bank of England, aims to streamline financial market transactions by bridging the gap between traditional and digital finance. According to Reuters, the raised capital will be allocated to the establishment of a globally accessible liquidity management network, catering to both wholesale financial markets and emerging tokenised asset markets. Fnality intends to deploy this network to facilitate new digital payment models on a continuous basis. 

Fnality's application of blockchain technology aims to provide institutions with a robust method to utilise central bank funds across various scenarios, including instantaneous cross-border payments, collateral management, and security transactions. Representatives from Goldman cited by Reuters brought up the the resilience of Fnality's blockchain-based approach. 

In addition to Goldman Sachs and BNP Paribas, the funding round saw continued support from investors such as Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, ING, Lloyds Banking Group, Nasdaq Ventures, State Street, Sumitomo Mitsui Banking Corporation, and UBS. 

With this latest funding round, Fnality's total capital raised stands at GBP 132.7 million (USD 165 million) at the time of writing.


UK-based blockchain-based wholesale payments firm Fnality has raised USD 95 million in a funding round led by Goldman Sachs.


Other developments from Fnality

This funding initiative follows more than four years since Fnality's last funding round, which secured GBP 55 million (USD 68.5 million) in June 2019, with support from backers such as UBS Group AG, Banco Santander SA, and Barclays Plc. The newly acquired funds will go towards enhancing the operations and functionality of Fnality's British pound-based system. 

According to Bloomberg, major banks such as JPMorgan Chase & Co., have also introduced initiatives utilising distributed ledger technology to streamline existing tasks, reflecting a broader industry trend.

Established in 2019, Fnality originated from a UBS-led blockchain project. Bloomberg reported that the company's primary objective is to develop digital versions of major currencies for application in wholesale payments and transactions involving digital securities. Despite the typical challenges faced by startups in bringing products to market, Fnality anticipates commencing initial operations of its Sterling payment system by the end of 2023, contingent upon receiving final regulatory approval.

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Keywords: funding, investment, blockchain, payments
Categories: DeFi & Crypto & Web3
Companies: Fnality, Goldman Sachs
Countries: United Kingdom
This article is part of category

DeFi & Crypto & Web3



Goldman Sachs

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