November 15, 2023

Goldman Sachs, BNP Paribas Lead around $100 Mln Funding Round To Fnality



Fnality, a fintech firm specializing in asset tokenization, has raised nearly $100 million in its Series B funding round. 

The investment was led by Goldman Sachs and BNP Paribas, with participation from other major players like DTCC, Euroclear, Nomura, and WisdomTree. 

Fnality builds tokenized versions of major currencies that are backed by cash held in central banks. The company raised $95 million in its Series B funding round, enabling it to continue expanding its business and exploring new opportunities in the world of asset tokenization.

DTCC, Euroclear, Nomura, and WisdomTree, among other leading players, participated in the funding round. Some banks that supported the funding round in 2019 also participated in this round. These banks include Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, ING, Lloyds Banking Group, Nasdaq Ventures, State Street, Sumitomo Mitsui Banking Corporation, and UBS.

Tokenizing traditional financial assets on public blockchains like Ethereum has recently become an important topic. Previously known as the Utility Settlement Coin project, Fnality is an initiative that aims to provide Delivery versus Payment (DvP) for wholesale banking using shared ledgers.

Rhomaios Ram, CEO of Fnality International, has commented on their recent B Series funding round. He mentioned that the funding round reflects the increasing demand for a blockchain-based settlement solution that central banks back. Their solution aims to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi) in the financial sector. 

Mathew McDermott, who heads the digital assets division at Goldman Sachs, believes that Fnality is playing a significant role in the tokenization trend. He added that Fnality’s blockchain technology provides institutions with a flexible way to use central bank funds for various use cases, including instant cross-border payments, multi-currency payments, collateral mobility, and secure transactions.

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