International payments platform Fnality tokenizes Bank of England assets

11 months ago 44

Financial giant Lloyds and others participate in the transaction

Fnality International, a global consortium of banks building regulated payment systems, announced on the 14th that it has conducted the first live digital trading of central bank funds.

Financial giants Lloyds Banking Group, Banco Santander and UBS are the first participants in the system, the Sterling Fnality Payment System (£FnPS).

The “Sterling Fnality Payment System” is a payment system operated by Fnality in cooperation with the Bank of England, the central bank of the United Kingdom.

Founded in 2019, Fnality is building a decentralized financial market infrastructure (dFMI), bringing the world’s first 24-hour DLT-based payment system to the wholesale banking market. This is what we aim to provide.

It was approved by the UK Treasury as a payment system in 2022 and is now under the jurisdiction of the Bank of England and regulators.

In the same year’s Series B funding round, Japanese financial giants Nomura Holdings and Mizuho Financial Group also invested.

connection: Nomura and Mizuho participate in procurement round of blockchain payment company Fnality

Future of Sterling Fnality payment system

Fnality says this move allows it to combine for the first time the safety and quality of central bank funds with the innovative functionality and flexibility of blockchain technology in a wholesale payment system.

Rhomaios Ram, CEO of Fnality, said:

This success is a major step forward in the field of wholesale payments and digital assets and demonstrates the global potential of Fnality’s DLT-based payment system.

The various banks and financial market infrastructure providers we are working with are poised to join the platform in the coming months.

With a series of exciting enhancements in development, we are well on our way to realizing our vision of a seamless global liquidity management ecosystem.

With the ‘Sterling Fnality Payment System’ (£FnPS), Fnality will enable payment (P), payment-to-payment (a certain amount of It also aims to provide new payment models for transactions in foreign money (PvP) and delivery-to-payment (DvP), which refers to the delivery of securities and payments.

In the future, under the supervision of the Bank of England, settlements in other core currencies including the US dollar and the euro, participation of more banks, conditional settlements, digital securities (ST) settlements, intraday repos, intraday The company is also considering developing various functions such as FX swaps.

The initial plan is to turn major currencies, including the Japanese yen and Canadian dollar, into digital tokens and build a network for P2P payments on the blockchain.

Fnality has held another Series B round this year, and in November, it announced that it had raised approximately 14.46 billion yen led by Goldman Sachs and BNP Paribas.

connection: International payment platform Fnality raises 15 billion yen to tokenize bank funds

Asset tokenization is an area that is attracting attention from the financial industry and central banks around the world. On the 7th, the deputy governor of the Central Bank of Taiwan also talked about the idea of liquidating tokenized assets with CBDC, saying that asset tokenization and central bank digital currency (CBDC) are the keys to innovation.

connection: Taiwan central bank highlights the benefits of CBDC and real asset tokenization (RWA)

What is RWA?

Abbreviation for “Real World Asset.” RWA that is tokenized on the blockchain includes real assets such as real estate, artwork, trading cards, and securities such as stocks and bonds.

Virtual currency glossary