Goldman Sachs and BNP Paribas Fund Fnality: A Leap into Blockchain Payments

Major Players Join Forces

In a move that sent ripples through the financial sector, global investment bank Goldman Sachs and the French universal bank BNP Paribas have spearheaded a significant funding round for Fnality, a blockchain-based wholesale payments firm. The excitement around this funding round indicates a robust endorsement of blockchain technology and its potential in the financial landscape.

Big Bucks Raised

Fnality has successfully raised £77.7 million (approximately $95.09 million) in this latest funding round, as reported by Reuters. This is not just pocket change; it’s a clear signal that big players are betting on the future of blockchain. Major participants included not only Goldman Sachs and BNP Paribas but also notable settlement houses like Euroclear and the Depository Trust and Clearing Corporation. Even WisdomTree, a global exchange-traded fund firm, hopped on the bandwagon, along with existing investor Nomura.

Involvement of Existing Players

The fundraising didn’t stop there. It also reeled in a number of initial round backers, such as Banco Santander, BNY Mellon, Barclays, and many more. In fact, back in June 2019, UBS and a cast of other global banks had already thrown £55 million ($63.2 million) into Fnality, with hopes of launching a cutting-edge blockchain-based trade settlement platform. Talk about long-term vision!

Planned Projects with New Capital

So, what’s Fnality planning to do with this fresh influx of cash? The funds are earmarked for establishing a non-stop global liquidity management network. This will pave the way for new digital payment models specifically designed for wholesale financial markets and emerging tokenized asset markets. The ultimate goal? To kick off the Sterling Fnality Payment System in 2023, pending approval from the Bank of England. Set your calendars, folks!

Blockchain in Action

Goldman’s global head of digital assets, Mathew McDermott, shared the exciting potential of Fnality’s blockchain technology. The system would enable institutions to use central bank funds for a variety of applications including

instantaneous cross-border payments
cross-currency transactions
seamless collateral mobility
sophisticated security transactions

Imagine a world where payments are as easy as sending a text! Sounds dreamy, right?

Fnality: The Foundation of the Future

Founded in 2019 as a brainchild of UBS, Fnality was established with the ambitious aim of creating digital currencies for wholesale payments. Initially part of the Utility Settlement Coin (USC) project, the idea was to tokenize major fiat currencies like the dollar and euro on an Ethereum blockchain. This isn’t just a tech project; it’s about revolutionizing how we think about money in a digital world.

Competition is Heating Up

But Fnality isn’t alone in this race. Other banking giants such as JPMorgan are also exploring blockchain tech. They recently launched a programmable payment feature on their JPM Coin platform, highlighting the increasing focus on institutional investors. Just remember to keep your eyes peeled; you never know where the next big innovation will pop up!