Big Banks Rely on Blockchain Technology to Transform International Finance

London-based fintech company Fnality International, which focuses on blockchain-powered wholesale payment solutions, has raised $136 million in a Series C funding round. The round was led by

, , , along with KBC Group, Temasek, and Tradeweb. Previous backers such as , Santander, Barclays, BNP Paribas, and UBS also joined this round, highlighting the increasing trust of major institutions in tokenized financial infrastructure. The new funds will help Fnality expand into U.S. dollar and euro markets, improve liquidity management solutions, and enable settlement of tokenized assets like stablecoins and securities.

This latest investment follows Fnality’s $95 million Series B round in 2023, led by Goldman Sachs and BNP Paribas, which supported the launch of its sterling-based Fnality Payment System in the UK. The company’s platform uses distributed ledger technology (DLT) to enable instant, atomic settlements with central bank money, reducing dependence on traditional intermediaries and simplifying processes such as repos, tokenized securities trading, and cross-currency payments. This innovation tackles inefficiencies in wholesale finance, where international transfers can take several days and require substantial capital reserves.

Michelle Neal, Fnality’s CEO, highlighted the strategic value of the investment, noting that blockchain-powered systems “link traditional finance to the rapid growth of tokenized and decentralized markets.” The Sterling Fnality Payment System (£FnPS), launched in late 2023, already provides around-the-clock real-time settlements for UK financial institutions. The fresh capital will help extend this model to other major currencies, subject to regulatory clearance from the Federal Reserve and European Central Bank.

Industry leaders now see Fnality as a key infrastructure provider in the tokenized asset landscape. WisdomTree CEO Jonathan Steinberg called the investment a “vital building block for the future of financial services,” aligning with the company’s goal to bring blockchain technology into capital markets. Jim DeMare of Bank of America emphasized the partnership’s importance in “upgrading market infrastructure” to allow institutions to transact with “greater speed and efficiency.” Citi’s Deepak Mehra remarked that Fnality’s regulated DLT model presents a “strong solution” for interoperable payment systems in the digital asset space.

This funding mirrors broader shifts in financial technology, such as Google’s recent launch of an open-source AI payment protocol and SBI Shinsei Bank’s work on multicurrency tokenized deposits. Fnality’s distinct advantage is its ability to remove credit and settlement risk by settling transactions directly with central bank reserves, unlike other models that depend on commercial bank funds or intermediary tokens. The company’s “earmarking” capability, which lets institutions set aside funds for specific uses, further boosts programmability and operational effectiveness.

With the global cross-border payments sector exceeding $120 billion in value, Fnality’s growth matches the rising need for faster and more transparent financial systems. The company seeks to connect traditional financial markets with decentralized finance by merging DeFi’s operational improvements with the capital efficiency of established finance. As tokenized assets become more mainstream, Fnality’s system is set to support real-time trading of digital bonds and other securities, all underpinned by settlement rails backed by central banks.