Fnality, a London-based blockchain payments company, has secured $136 million in a Series C funding round to expand its tokenized settlement network, an infrastructure aimed at revolutionising cross-border digital asset payments. The round was led by major institutional investors including WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb, with existing backers such as Banco Santander, Barclays, BNP Paribas, DTCC, Euroclear, Goldman Sachs, ING, Nasdaq Ventures, State Street, and UBS also participating. This infusion of capital will support Fnality’s growth in various major currencies and broaden the reach of its global bank tokenized settlement network.

At its core, Fnality operates wholesale payment systems regulated by central banks, leveraging distributed ledger technology (DLT) to facilitate real-time settlement of tokenized securities, delivery versus payment (DvP), and repo transactions. The firm made a significant stride in December 2023 by launching the Sterling Fnality Payment System (£FnPS), which enables banks to clear digital asset transactions fully backed 1:1 by funds held at the Bank of England. The UK government granted the £FnPS settlement finality designation in December 2024, underscoring its systemic importance in the financial ecosystem. Fnality’s system offers 24/7 payment rails and instant settlement capabilities, addressing long-standing inefficiencies and liquidity constraints inherent in traditional financial market infrastructures.

The company’s ambition extends beyond sterling, aiming to expand into other major currencies such as the US dollar and euro, contingent on regulatory approvals. Fnality's platform not only supports real-time processing but also enhances liquidity management and enables interoperability between emerging innovations like stablecoins and tokenized deposits. By bridging the gap between conventional finance and decentralized finance, Fnality is promoting the integration of tokenized markets into regulated financial systems. This hybrid model provides the security and reliability associated with central bank money while harnessing the speed and transparency benefits of blockchain technology.

Industry analysts view Fnality’s latest funding milestone as indicative of growing institutional interest in tokenized assets and digital settlement solutions. The platform’s reliance on central bank funds offers enhanced stability and reduced settlement risk, especially crucial in high-volume or cross-border transactions. Leading banks such as JPMorgan and HSBC have been exploring tokenized deposits using similar settlement rails, reflecting a broader trend of major financial institutions embracing decentralized solutions within a regulated framework. Fnality’s progress thus models how decentralized finance concepts can be adopted at scale while complying with regulatory demands, potentially reshaping global capital markets to be more liquid, transparent, and efficient.

With this substantial Series C funding, Fnality plans to bolster product development efforts and accelerate regional expansion. The company envisions its settlement system becoming a primary provider for regulated solutions capable of supporting both traditional and tokenized financial products. As more banks and market operators seek compliant digital payment infrastructures, Fnality is positioning itself at the forefront of the transition towards a more integrated and technologically advanced financial market ecosystem.

📌 Reference Map:

Source: Noah Wire Services