Big Banks Bet on Blockchain to Modernize Global Finance

Fnality International, a London-based fintech firm specializing in blockchain-based wholesale payment systems, has secured $136 million in a Series C funding round led by WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb. Existing investors including Goldman Sachs, Santander, Barclays, BNP Paribas, and UBS also participated, underscoring growing institutional confidence in tokenized finance infrastructure. The capital will accelerate Fnality’s expansion into U.S. dollar and euro markets, enhance liquidity management tools, and support the settlement of tokenized assets such as securities and stablecoins.

The funding round builds on Fnality’s 2023 $95 million raise led by Goldman Sachs and BNP Paribas, which enabled the launch of its sterling-denominated Fnality Payment System in the UK. The firm’s platform leverages distributed ledger technology (DLT) to facilitate real-time, atomic settlements using central bank money, reducing reliance on traditional intermediaries and streamlining processes like repos, tokenized securities exchanges, and cross-currency transactions. This approach addresses inefficiencies in wholesale finance, where cross-border payments often take days and tie up significant capital.

Fnality’s CEO Michelle Neal emphasized the strategic importance of the funding, stating that blockchain-based systems “connect traditional finance with the fast adoption of tokenized and decentralized markets”. The company’s Sterling Fnality Payment System (£FnPS), launched in late 2023, already enables 24/7 real-time settlements for UK institutions. The new capital will expand this model to other currencies, pending regulatory approvals from the Federal Reserve and European Central Bank.

Industry leaders have positioned Fnality as a critical infrastructure player in the tokenized asset ecosystem. WisdomTree CEO Jonathan Steinberg described the investment as a “critical foundation for the future of financial services,” aligning with the firm’s vision to integrate blockchain into capital markets. Bank of America’s Jim DeMare highlighted the partnership’s role in “modernizing the market structure” to enable institutions to operate with “greater speed and efficiency”. Citi’s Deepak Mehra noted that Fnality’s regulated DLT approach offers a “compelling pathway” for interoperable payment systems in digital asset markets.

The investment reflects broader trends in financial innovation, including Google’s recent open-source AI payment protocol and SBI Shinsei Bank’s collaboration on multicurrency tokenized deposits. Fnality’s unique value proposition lies in its ability to eliminate credit and settlement risks by anchoring transactions to central bank reserves, unlike alternatives that rely on commercial bank money or intermediary tokens. The firm’s “earmarking” feature, which allows institutions to reserve funds for specific purposes, further enhances programmability and operational efficiency.

With the global cross-border payments market valued at over $120 billion, Fnality’s expansion aligns with demand for faster, more transparent financial infrastructure. The firm aims to bridge traditional finance with decentralized markets by combining Decentralized Finance (DeFi)’s operational optimization with Traditional Finance’s capital efficiency. As tokenized assets gain traction, Fnality’s platform is positioned to facilitate real-time trading of digital bonds and other securities, supported by its central bank-backed settlement rails.