Fnality Raises $136M in Series C to Expand Global DLT Settlement Network
Fnality Raises $136M in Series C to Expand Global DLT Settlement Network
Fnality, the London-based operator of distributed ledger technology (DLT) payment systems, has raised $136 million (£99.7 million) in a Series C funding round. The raise was led by WisdomTree, Bank of America, Citi, KBC Group, Temasek, and Tradeweb, with participation from existing investors such as Goldman Sachs, UBS, Barclays, BNP Paribas, and Santander.
The fresh capital marks a critical step in Fnality’s mission to create a regulated settlement network that bridges traditional financial infrastructure with the fast-emerging world of tokenised assets. Fnality’s systems are anchored in central bank funds, offering 24/7 real-time settlement and liquidity optimisation.
Michelle Neal, CEO of Fnality International, said the round reflects “a shared conviction that the future of money demands a new foundation, one with Fnality at its core.” She added that the company’s blockchain-based systems are “building a future that fuses decentralised finance’s operational optimisation with traditional finance’s capital efficiency.”
Scaling a Regulated Settlement Network
Fnality launched its first payment system, the Sterling Fnality Payment System (£FnPS), in December 2023. The system was the world’s first regulated DLT-based wholesale payment system recognised by HM Treasury as systemically important. It enables peer-to-peer wholesale payments backed by central bank funds, with applications ranging from delivery-versus-payment (DvP) for tokenised securities to real-time repo transactions.
With the Series C funds, Fnality plans to expand its model to other major currencies and support interoperability between emerging innovations such as stablecoins, tokenised deposits, and institutional tokenised assets. This cross-currency approach is designed to create an institutional-grade settlement layer across capital markets.
Industry leaders see this as a pivotal development for global finance. Jonathan Steinberg, CEO of WisdomTree, described Fnality as “a critical foundation” for the tokenised markets WisdomTree is targeting with products like WisdomTree Prime®. Bank of America Co-President Jim DeMare emphasised that Fnality helps “modernise the market structure” to give institutions faster and more efficient operations.
Institutional Confidence
The investor lineup highlights growing institutional conviction in blockchain-based wholesale payment rails. Alongside lead backers, returning investors include DTCC, Euroclear, ING, Nasdaq Ventures, and State Street. Each has a vested interest in the evolution of market infrastructure toward tokenised securities and programmable finance.
Deepak Mehra, Head of Digital Strategy at Citi Markets, said Fnality’s work “offers a compelling pathway for more efficient and resilient financial market infrastructure.” Tradeweb CEO Billy Hult echoed this, noting that integrating central bank-backed cash into digital workflows “unlocks the full potential of trading digital bonds and other tokenised securities.”
This broad base of support positions Fnality not just as a fintech, but as a foundational layer within regulated finance. By focusing on interoperability, regulatory alignment, and institutional trust, Fnality is carving a path where digital assets can scale within frameworks acceptable to global financial authorities.
The Bigger Picture
Fnality’s model addresses one of the biggest challenges in digital finance: the lack of institutional-grade settlement systems. While retail-facing stablecoins have gained momentum, large-scale institutional adoption requires regulated infrastructure anchored in central bank money. Fnality provides exactly that.
The system’s design goes beyond faster payments. By enabling instant settlement and reducing counterparty risk, it unlocks efficiencies in repo markets, FX transactions, and securities settlement. For banks, asset managers, and exchanges, these efficiencies translate into lower costs, greater liquidity, and stronger resilience against systemic shocks.
Erik Luts, Chief Innovation Officer at KBC Group, called Fnality “a blueprint for how financial institutions can work together to deliver better outcomes.” That message underscores the collaborative nature of this raise: global banks and asset managers are not just investors but future users of the system..
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Future Outlook
Fnality’s success depends on its ability to balance innovation with compliance. Each Fnality Payment System must be supervised by its respective central bank, a factor that adds credibility but also requires deep regulatory collaboration.
Still, the direction is clear. As financial markets continue moving toward tokenisation, the need for settlement layers that combine the trust of central banks with the speed of blockchain will only grow. Fnality’s Series C funding underscores that leading institutions see this as more than an experiment—it’s the foundation for the next phase of global finance.
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