Goldman Sachs Invests $95M in Blockchain Payment System
Goldman Sachs Invests $95M in Blockchain Payment System
Goldman Sachs, an American financial powerhouse, has reportedly taken the lead in a recent $95M funding to fuel Fnality, a London blockchain-based wholesale payments firm.
The funding drive also saw the active participation of settlement houses such as Euroclear, Depository Trust, and Clearing Corporation, along with the active participation of WisdomTree and the ongoing support of existing investor Nomura.
On November 14, Fnality announced this milestone in an official press release, indicating the success of raising £77.7 million ($95.09 million) in the Series B funding round.
Correspondingly, this financial injection will set the launch of its Sterling Fnality Payment System in 2023, subject to pending approval from the Bank of England.
The awaited system would be the first 24/7 global liquidity management network that caters to tokenized asset markets and digital payment models within wholesale financial markets.
Subsequently, Fnality's blockchain technology application aims to allow entities to leverage central bank funds across a diversity of use cases.
Mathew McDermott, Goldman's global head of digital assets, highlighted the versatility of Fnality's technology, citing applications such as secured cross-border and cross-currency payments.
Earlier this year, Goldman Sachs and other fintech firms collaborated with Digital Asset firm to launch the Canton Network. The blockchain is designed to connect institutions and financial assets, aiming to provide enhanced privacy and control at a reduced cost.
In addition, the Series B funding round includes Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, ING, and Lloyds Banking Group. Likewise, Nasdaq Ventures, State Street, Sumitomo Mitsui Banking Corporation, and UBS joined the funding.
Remarkably, UBS and several global banks had previously injected £55 million ($63.20 million) into Fnality in 2019, to establish a blockchain-based trade settlement platform.
Rhomaios Ram, CEO of Fnality International, stated that the Series B funding round signifies the financial sector's interest in a central bank money-backed blockchain-based settlement solution.
Since its establishment, Fnality has operated for the development of digital versions of major currencies for wholesale payments and transactions involving digital securities.
In 2021, the Bank of England approved a new central bank account to accommodate diverse payment systems, including those based on blockchain or distributed ledger technology used in cryptocurrencies.
At the same time, this decision reflects a strategic approach to evolving financial technologies, positioning the bank to adapt to trends in the digital payment landscape.
Consequently, its introduction was marked under the Utility Settlement Coin (USC) project, which aimed to tokenize fiat currencies, including the US dollar and the euro, on an Ethereum-based blockchain.
Furthermore, Fnality's current endeavors align with broader trends in the banking sector, as banking giants like JPMorgan actively explore blockchain and tokenization.
Earlier this month, JPMorgan introduced a programmable payment offering on its JPM Coin platform. This feature targeted institutional clients in the changing landscape of financial technology.
