London-based blockchain payments company Fnality secured $136 million in a Series C funding round backed by some of the world’s largest financial institutions.
Bank of America, Citi, KBC Group, Temasek, Tradeweb and WisdomTree led the round, joined by returning investors including Goldman Sachs, Santander, Barclays and UBS, according to a Tuesday announcement by the company.
“The closing of our Series C reflects a shared conviction that the future of money demands a new foundation,” Fnality CEO Michelle Neal said. She added that the company’s blockchain-based settlement systems offer “24/7 payment rails, real-time settlement, and enhanced liquidity.”
Fnality, which launched its sterling-denominated Fnality Payment System in the United Kingdom last year, aims to modernize wholesale payments through a blockchain-based infrastructure tied to central bank reserves. The new capital will help Fnality expand into the US dollar and euro markets, pending regulatory approvals, it said.
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Fnality taps DLT to bridge TradFi and tokenized markets
Fnality uses distributed ledger technology to simplify institutional settlements, enabling real-time repo, tokenized securities settlement and cross-currency payments. The goal is to connect traditional finance with tokenized markets while improving liquidity and reducing settlement risks.
WisdomTree CEO Jonathan Steinberg described Fnality’s platform as a “critical foundation” for tokenized finance. “Our investment in Fnality reflects our ambition to plug directly into the rapidly growing tokenized markets,” Steinberg added.
Citi’s head of digital strategy Deepak Mehra said that Fnality aligns with the bank’s strategy to build more efficient, interoperable payment systems for digital assets.
In 2023, Fnality raised $95 million in a funding round led by Goldman Sachs and BNP Paribas, with participation from Euroclear, DTCC, WisdomTree and existing backer Nomura.
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Google launches AI payment protocol with stablecoin support
Fnality’s recent raise comes amid growing interest in crypto payment rails. Last week, Google launched an open-source protocol that enables AI applications to send and receive payments, including stablecoin transactions, in collaboration with Coinbase, Salesforce, American Express and over 60 other partners.
The system is designed to work with both traditional payment rails and emerging crypto options, reflecting the growing use of dollar-pegged stablecoins in AI-powered systems.
Furthermore, SBI Shinsei Bank has partnered with Singapore’s Partior and Japan’s DeCurret DCP to explore multicurrency tokenized deposits for cross-border settlements. The trio signed an MOU to develop a blockchain-based framework that enables real-time clearing across various currencies.
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