Today Fnality, the blockchain wholesale payment and settlement platform, announced its £77.7m ($95m) Series B funding round led by Goldman Sachs and BNP Paribas. The two big banks are new investors alongside the DTCC. Existing backers include 13 global banks, Euroclear, Nomura, Nasdaq and Wisdomtree.
Formerly called the Utility Settlement Coin, the wholesale tokenized money is backed by deposits at the central bank. Banks transfer money from their Bank of England accounts to the Fnality UK central bank account where it’s tokenized. It can then be used to settle securities transactions, to provide collateral and various other use cases. Because the money is tokenized it enables instant atomic settlement, reducing counterparty risk.
One of the intended use cases is cross currency payments. Fnality plans its digital pound to be one of several currencies, but each needs the cooperation of the local central bank. According to a statement, Fnality seems optimistic about the launch of a USD token. Previously it was bullish about the euro but there’s no mention of it. Industry insiders told Ledger Insights the EU authorities are less supportive as they’re exploring wholesale CBDC solutions.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
