Goldman Sachs and BNP Paribas have led London-based fintech Fnality’s £77.7m series B funding round.
Fnality, a fintech firm that applies blockchain technology for central bank transactions, has has raised a total of £132.7m to date.
The firm’s other shareholders include the likes of UBS, ING, Banco Santander, BNY Mellon, Barclays and Nomura.
READ Nomura’s crypto arm targets institutional investors with new bitcoin fund
Fnality was designated last year by the UK Treasury as a regulated payment system. The firm is preparing for the launch of the Sterling Fnality Payment System, a settlement system for tokenised assets. Fnality said in it expected the system to launch this year, subject to regulatory approval.
Fnality chief executive Rhomaios Ram said its latest funding round indicates the “desire for a central bank money-backed blockchain-based settlement solution” to bridge the gap between traditional finance and decentralised finance in wholesale markets.
Olivier Osty, head of corporate and institutional banking global markets at BNP Paribas, said that the bank is committed to “exploring” innovative solutions within the banking industry.
The use of blockchain technology across the traditional finance industry has increased in recent months amid a flurry of institutions coming into the sector.
READ JPMorgan’s blockchain boss eyes JPM Coin’s expansion to sterling
An August survey by Citi shows that 87% of financial institutions see digital money including central bank digital currencies and blockchain-based stablecoins as “viable means” to support securities settlement.
Citi launched its blockchain-based token services for cash management and trade finance in September. Germany’s DZ Bank launched its blockchain-based digital custody platform in November.
To contact the author of this story with feedback or news, email Bilal Jafar
