Goldman Sachs and BNP Paribas Lead $95M Funding for Blockchain Firm Fnality
Summary:
Goldman Sachs and BNP Paribas led a funding round for blockchain-based wholesale payments firm Fnality, which raised $95M. The funding, which included participation from settlement houses and past investors, will aid in establishing a 24/7 global liquidity management network for emerging digital payment models. Goldman's global head of digital assets, Mathew McDermott, emphasized the technology's potential uses, including immediate, cross-border, cross-currency payments. The funding also sets the groundwork for the 2023 launch of the Sterling Fnality Payment System.
Global financial establishments Goldman Sachs and BNP Paribas have spearheaded a fresh investment round for Fnality, a Nomura Group-supported company specializing in blockchain-dependent wholesale payments. Fnality has successfully gathered investment of 77.7 million British pounds (equivalent of $95.09 million) during its second financing round, as Reuters unveiled on Nov. 13. Not only Goldman and BNP Paribas, but other prominent entities such as Euroclear and Depository Trust and Clearing Corporation, known for settlement activities, have also participated. Other investors involve global ETF company WisdomTree along with previous Fnality backer Nomura.
The fundraiser also saw increased investment from initial supporters like Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, ING, Lloyds Banking Group, Nasdaq Ventures, State Street, Sumitomo Mitsui Banking Corporation, and UBS. As noted earlier, UBS and other international banks invested 55 million pounds (around $63.2 million) into Fnality back in June 2019, with a vision to launch a blockchain-driven trading settlement platform.
The injected capital is slated for the establishment of a 24/7 worldwide liquidity management grid to support novel digital payment methods in wholesale finance markets and the budding tokenized asset markets, as reputedly mentioned by Fnality. The capital infusion also establishes a foundation for the initial launch of the Sterling Fnality Payment System in 2023, pending approval from the Bank of England.
Fnality's application of blockchain technology enables organizations to utilize central banks funds across various potential applications, according to Mathew McDermott, Goldman's head of digital assets globally. He emphasized applications may include immediate, transnational, cross-currency payments, collateral mobility, and transactions involving security.
Fnality was initiated in 2019 as a UBS-led blockchain project with a specific objective to create digital versions of main currencies for wholesale payments and transactions involving digitized securities. Originally launched under the Utility Settlement Coin (USC) project, its aim was to tokenize currencies like the U.S. dollar and the euro on a blockchain based on Ethereum.
International banking firms like JPMorgan have also been deeply involved in blockchain and tokenization. As of early November, JPMorgan initiated a fresh programmable payment feature on its JPM Coin platform, focusing on institutional investors.
Published At
11/14/2023 9:09:04 AM
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