Fnality’s $136M Boost Fuels Hybrid Finance Future

Fnality International, a UK-based fintech firm specializing in blockchain-based payment systems, has secured $136 million in a Series C funding round led by major global financial institutions. The investment, announced on September 23, 2025, was spearheaded by WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb, with existing backers such as Goldman Sachs, UBS, and Barclays also participating. This marks the third significant funding round for the company, following $95 million in 2023 and $67 million in 2019 .

The funds will be allocated to expand Fnality’s blockchain infrastructure, which enables real-time settlement of tokenized assets such as bonds, equities, and stablecoins. The platform operates on distributed ledger technology (DLT) and is designed to streamline cross-border transactions by leveraging central bank money. For instance, Fnality’s Sterling Fnality Payment System (£FnPS), launched in December 2023, allows banks to settle trades using digital cash fully backed by the Bank of England. The firm aims to replicate this model for other currencies, pending regulatory approvals from the Federal Reserve and European Central Bank .

Fnality’s technology addresses longstanding inefficiencies in wholesale finance, where traditional systems like SWIFT often result in delayed settlements and liquidity constraints. By enabling instant, atomic transactions, the platform reduces the need for intermediaries and enhances capital efficiency. For example, a repo trade that typically takes a day to settle could close instantly, freeing up funds for other transactions. The firm’s “earmarking” feature further differentiates it by allowing institutions to reserve funds for specific purposes, ensuring they can only be used as intended .

The investment underscores a broader industry shift toward tokenization, with Fnality positioning itself as a critical infrastructure provider for decentralized finance (DeFi). CEO Michelle Neal emphasized that the funding represents progress toward a “hybrid future of global finance,” where traditional institutions seamlessly integrate with decentralized markets. Existing investors, including Banco Santander, Barclays, and JPMorgan, have also participated in prior rounds, reflecting growing confidence in Fnality’s vision Fnality Raises $136M to Expand Blockchain Payment Systems^[1].

With over $280 million raised since 2019, Fnality now targets expansion into U.S. dollar and euro markets, aiming to capture a share of the $120 billion-plus cross-border payments sector. The company’s focus on interoperability with tokenized deposits and stablecoins aligns with initiatives by banks such as JPMorgan and HSBC, which are piloting deposit tokenization. Fnality’s approach avoids credit risk by anchoring transactions in central bank money, unlike solutions reliant on commercial bank reserves .

Jonathan Steinberg, CEO of WisdomTree, highlighted the strategic importance of Fnality’s infrastructure in modernizing financial systems. “We see Fnality’s blockchain-based settlement systems, anchored in reserves held in central banks, as a critical foundation for this vision and the future infrastructure of financial services,” he stated . The firm’s roadmap includes enhancing liquidity management tools and accelerating regulatory approvals in key jurisdictions, as outlined by CEO Neal Fnality International Raises $136M to Expand Blockchain Payments^[2].

The funding round coincides with increased regulatory scrutiny and innovation in the crypto space. Recent developments, such as JPMorgan’s tokenized dollar deposit trials and Binance founder CZ’s endorsement of rival projects, underscore the sector’s dynamic nature. Fnality’s focus on institutional-grade solutions positions it to capitalize on this momentum while addressing risks such as market manipulation, which have plagued other crypto projects .