Institutional Investors Bet $136M on Central Bank-Backed Blockchain Future

Fnality, a London-based developer of blockchain-based wholesale payment systems, has secured $136 million in a Series C funding round to expand its tokenized settlement networkFnality Raises $136 Million in Series C Funding | Fnality^[1]. The round was led by WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb, with participation from existing investors including Banco Santander, Barclays, BNP Paribas, DTCC, Euroclear, Goldman Sachs, ING, Nasdaq Ventures, State Street, and UBSFnality Raises $136M to Expand Tokenized Settlement Network^[2]. This brings Fnality’s total funding since 2019 to over $280 million, following a $95 million raise in 2023 and a $67 million round in 2019Fnality raises $136 million Series C to expand settlement rails for tokenized markets^[3].

The capital will accelerate Fnality’s expansion into U.S. dollar and euro markets, pending regulatory approvals, while enhancing liquidity management tools and interoperability with stablecoins and tokenized depositsFnality Expands Tokenized Finance Network with $136 Million^[4]. The company’s Sterling Fnality Payment System (£FnPS), launched in December 2023, enables real-time settlement of tokenized securities, cross-currency payments, and repo transactions using digital representations of central bank fundsFnality Secures $136 Million to Expand Tokenized Settlement Network^[5]. The system, the first regulated DLT-based wholesale payment network, operates 24/7 and has been granted settlement finality designation in the UKFnality Raises $136M to Expand Blockchain Payment Network^[6].

Fnality’s blockchain infrastructure aims to bridge traditional finance with tokenized markets by leveraging central bank-backed liquidity. CEO Michelle Neal emphasized the firm’s role in modernizing wholesale payments through “24/7 payment rails, real-time settlement, and enhanced liquidity management,” positioning it as a hybrid model that combines decentralized finance’s operational efficiency with traditional finance’s capital resilienceFnality raises $136 million in Series C funding^[7]. WisdomTree CEO Jonathan Steinberg described Fnality’s platform as a “critical foundation for tokenized finance,” while Citi’s Deepak Mehra noted its alignment with the bank’s goals to develop interoperable payment systemsFnality Targets Interoperable Tokenized Payment Rails^[8].

The funding underscores growing institutional momentum for blockchain-driven financial infrastructure. Fnality’s regulated DLT systems address counterparty risk and fragmented liquidity in tokenized markets by anchoring transactions to central bank reservesFnality Grows Amid Rising Institutional Adoption of Tokenized Assets^[9]. Competitors, including JPMorgan’s Onyx and Partior, rely on commercial bank money, exposing transactions to credit risk. Fnality’s approach eliminates this by using direct, atomic swaps of fiat currencies on the blockchainFnality taps DLT to bridge TradFi and tokenized markets^[10].

Industry leaders view Fnality’s expansion as pivotal for the tokenization of assets such as bonds, equities, and treasuries. The firm’s roadmap includes scaling cross-currency systems, securing regulatory approvals in key jurisdictions, and integrating with emerging stablecoin ecosystemsFnality Positioned for Hybrid Financial Future^[11]. With the Federal Reserve and European Central Bank as potential partners, Fnality aims to position itself as a foundational infrastructure provider in the hybrid financial landscapeFnality’s recent raise comes amid growing interest in crypto payment rails^[12].

The Series C round reflects confidence in Fnality’s ability to reshape global capital markets. By combining real-time settlement, programmable liquidity, and central bank oversight, the platform addresses inefficiencies in cross-border transactions and tokenized asset settlements. As tokenization gains traction, Fnality’s regulated systems may become critical to institutional workflows, enabling seamless integration of decentralized innovations with traditional market structuresFnality identifies itself as the infrastructure of global settlement^[13].