In a significant development in the financial technology sector, Goldman Sachs and French banking giant BNP Paribas have spearheaded a £77.7 million ($95.09 million) funding round for Fnality, a blockchain-based payment firm. This investment, Fnality’s second major funding round, underscores the growing interest in blockchain technology within the traditional finance industry.
Fnality, backed by notable institutions like Nomura, Barclays, and UBS, is at the forefront of revolutionizing wholesale payments and transactions through blockchain. The company plans to utilize the new capital to establish a global liquidity management network tailored for digital payments and the emerging market of tokenized assets. Anticipated to launch in 2023, the Sterling Fnality Payment System awaits approval from the Bank of England.
The integration of blockchain technology by Fnality offers transformative prospects for the finance sector, allowing institutions to leverage central bank funds for efficient, cross-border transactions. These advancements promise to deliver instantaneous payments across different currencies, enhancing the mobility and security of collateral and transactions.
Fnality was initially established in 2019 as a UBS-led blockchain project, aimed at creating digital versions of major currencies for wholesale payments. Its foundation, the Utility Settlement Coin (USC) project, focuses on tokenizing fiat currencies like the US dollar and euro on an Ethereum-based blockchain, marking a significant step towards the digitization of global finance.
This latest investment round, featuring participation from various financial institutions and settlement houses, reflects a broader industry trend towards embracing blockchain solutions. It highlights the potential of blockchain technology to streamline and secure financial transactions on a global scale.
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