Blockchain for Banking Feature News

In Depth: Fnality, the global blockchain payments system backed by Nasdaq, 14 global banks

fnality blockchain payments

Some, including the BIS, classify what Fnality International is building as a wholesale stablecoin, alongside JPM Coin. We spoke to two executives at Fnality, the company behind the enterprise blockchain project formerly known as the Utility Settlement Coin, and both resisted the stablecoin label. Backed by 15 financial institutions, Fnality sees itself as a financial market infrastructure designed for on-chain payments.

With tokenization in full swing, executing payments in the traditional way slows things down, introduces settlement risk and eats into the advantages of blockchain. An on-chain digital currency enables instant settlement with finality or delivery versus payment (DvP).

Fnality Global Payments will comprise a series of local payment systems, with balances backed one-for-one by deposits at central banks with U.S. dollars, Euros, British pounds, Canadian dollars and Japanese Yen targeted as the first digital currencies. As a financial market infrastructure, to get going, Fnality needs central bank approval. The most likely to give initial clearance is the U.S. Federal Reserve, the Bank of England or the European Central Bank. 

Fnality is hopeful that the first bank might say yes in Q3 of this year, but there are no guarantees.

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