UK FinTech Fnality Secures €115 Million In Series C Round

The funding was led by WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb, with continued backing from existing investors including Santander, Barclays, BNP Paribas, Goldman Sachs, ING, Nasdaq, State Street, and UBS.

Michelle Neal, CEO of Fnality International, comments: "The closing of our Series C reflects a shared conviction that the future of money demands a new foundation, one with Fnality at its core. Our blockchain-based settlement systems, anchored in the credit quality of central bank money, connect traditional finance with the rapid adoption of tokenized and decentralized markets.

With 24/7 payment rails, real-time settlement and enhanced liquidity management we’re not just modernizing wholesale payments, we’re building a future that fuses Decentralised Finance’s operational optimisation with Traditional Finance’s capital efficiency. This investment accelerates our journey toward a financial market infrastructure that is more resilient, more inclusive, and ready for the hybrid future of global finance."

Founded in 2019, Fnality is building a global network of regulated DLT-based wholesale payment systems (FnPS), each overseen by its local central bank. Within these systems, participants use tokenised representations of central bank funds to make instant wholesale payments.

The rollout of FnPSs in major jurisdictions will enable 24/7 cross-currency transactions and atomic settlement for delivery-versus-payment trades. Backed by central bank funds, FnPSs deliver the one element digital asset markets have been missing: institutional-grade digital cash.

In December 2023, the Sterling FnPS designated by HM Treasury as a systemically important institution began processing controlled live payments. It became the world’s first regulated DLT-based wholesale payment system, settling in digital representations of central bank money alongside the UK’s established regulated payment systems.

Jim DeMare, Co-President of Bank of America, comments: "This partnership is an important milestone in the digitisation of institutional markets. By embracing new technological solutions we can modernize the market structure and lay the groundwork for institutions to operate with greater speed and efficiency. We are excited to play a role in delivering meaningful innovation to the financial ecosystem."

This funding is a major boost for Fnality as it works to build a global settlement network powered by DLT, linking traditional wholesale markets with the emerging world of institutional tokenised assets.

It comes after the company’s €89 million Series B round in November 2023, reported by EU-Startups.

Jonathan Steinberg, CEO and Founder at WisdomTree, comments: "Our investment in Fnality reflects our ambition to plug directly into the rapidly growing tokenised markets. At WisdomTree, we have been pioneers in blockchain-based finance with the launch of WisdomTree Prime and WisdomTree Connect, bringing ETFs, U.S. Treasuries, gold, and dollar tokens onto blockchain rails to enable 24/7 settlement and programmable finance. We see Fnality’s blockchain-based settlement systems, anchored in reserves held in central banks, as a critical foundation for this vision and the future infrastructure of financial services."

After launching Sterling FnPS, Fnality is now working to expand its network to more major currencies, improve liquidity management, and support the growing digital payment ecosystem by enabling seamless settlement for innovations like stablecoins and tokenized deposits.

The company sees itself as uniquely positioned to play a key role in building a new global settlement layer, collaborating with other market infrastructures across the evolving digital assets landscape.

Deepak Mehra Head of Digital Strategy Citi Markets comments: "Fnality’s work in wholesale payments aligns with Citi’s ongoing commitment to delivering innovative solutions for the digital asset landscape. Their regulated DLT-based approach offers a compelling pathway for more efficient and resilient financial market infrastructure. We are pleased to support Fnality’s efforts in developing interoperable payment systems that can contribute to the evolution of tokenised markets."

Fnality is working with the industry to deliver transformative solutions from real-time settlement of tokenised securities via secure delivery-versus-payment (DvP) using its earmarking feature, to on-demand FX payment-versus-payment settlement through the Sterling FnPS (£FnPS), and real-time repo transactions.

These examples demonstrate how regulated, DLT-enabled payments are redefining traditional financial market infrastructures, driving faster, more integrated, liquid, and resilient capital markets.

Erik Luts, Executive Director & Chief Innovation Officer KBC Group, comments: "KBC Group is pleased to renew its investment in Fnality, reflecting our belief in the long-term potential of regulated digital payment systems. KBC Group’s strategic vision is centered on enabling the future of finance through trusted innovation, and Fnality’s work is a natural fit with our ambition to support technologies that deliver real-world impact and long-term resilience for financial markets.

"We’re investing in a future where interoperability, speed, and security are not trade-offs but standard features. Fnality’s platform is a blueprint for how financial institutions can work together to deliver better outcomes."