Fnality Secures $136M: Are Regulators Ready for the Rise of Tokenized Finance?

London-based fintech company Fnality, which focuses on blockchain-driven wholesale payment solutions, has raised $136 million in its Series C funding round, reflecting increasing institutional trust in tokenized financial systems. The round was headed by

, , , KBC Group, Temasek, and Tradeweb, with returning investors such as , UBS, and Barclays also joining. This follows a $95 million Series B round in 2023, led by Goldman Sachs and BNP Paribas, which marked Fnality’s initial push into regulated digital currency settlements Fnality Raises $136M to Expand Blockchain Payment Systems for Banks [ 1 ].

The company’s platform utilizes distributed ledger technology (DLT) to enable instant, atomic settlements with tokenized central bank funds. This model removes the need for intermediaries in processes like delivery-versus-payment for digital assets and payment-versus-payment for currency exchanges. For example, a repo transaction that would typically require a day to settle can now be completed instantly, unlocking liquidity for financial institutions Goldman Sachs-backed Fnality raises $136M to replace SWIFT … [ 2 ]. Fnality’s current solution, the Sterling Fnality Payment System (£FnPS), already supports sterling transactions backed by central bank guarantees, and the company intends to expand into U.S. dollar and euro markets, pending approval from the Federal Reserve and European Central Bank Fnality adds Goldman, BNP Paribas, DTC… [ 3 ].

The fresh funding will help Fnality broaden its reach in tokenized asset settlements, including stablecoins and securities. Its “earmarking” capability, developed with Banco Santander, Lloyds Banking Group, and UBS, lets institutions reserve funds for specific uses, ensuring they are only spent as intended. This programmable feature brings conditionality to central bank digital money, allowing for automated payments triggered by events such as asset transfers Goldman Sachs-backed Fnality raises $136M to replace SWIFT … [ 2 ]. Unlike rivals such as JPMorgan’s Kinexys and Partior, which depend on commercial bank reserves and expose users to credit risk, Fnality operates on rails overseen by central banks, setting it apart in the market Goldman Sachs-backed Fnality raises $136M to replace SWIFT … [ 2 ].

Fnality CEO Michelle Neal described the investment as a move toward a “hybrid future of global finance,” where established institutions connect with decentralized markets. This funding reflects a wider industry shift, as leading banks look to upgrade their infrastructure for tokenized assets. Existing backers, including WisdomTree CEO Jonathan Steinberg, pointed to the platform’s potential to serve as a core layer for future financial services, thanks to its reliance on central bank-backed reserves Fnality Raises $136M to Expand Blockchain Payment Systems for Banks [ 1 ].

Fnality is targeting the cross-border payments sector, which is valued at over $120 billion. Its technology aims to solve inefficiencies in current systems, which are often slow, expensive, and fragmented. By supporting round-the-clock settlements and lowering counterparty risk through tokenization, Fnality seeks to capture a substantial portion of this market. However, regulatory barriers—especially for entering U.S. and eurozone markets—remain a significant obstacle Goldman Sachs-backed Fnality raises $136M to replace SWIFT … [ 2 ].

Fnality’s model differs from platforms like RippleNet and

, which use intermediary tokens or bridge assets. Instead, Fnality enables direct blockchain-based swaps of fiat currencies, reducing settlement times and credit risk. This positions the company as a potential game-changer in wholesale finance, where speed and capital efficiency are crucial Goldman Sachs-backed Fnality raises $136M to replace SWIFT … [ 2 ].