Fnality International, a London-based fintech with backing from UBS and Goldman Sachs, is poised to broaden the scope of its blockchain-based payment system by incorporating the US dollar.
Fnality’s Blockchain Payment System:
Fnality presently provides a blockchain-based payment system for sterling, commencing its inaugural transactions in December, with participants such as Lloyds, Santander, and UBS.
Fnality CEO Rhomaios Ram revealed, “So far, we are only dealing in sterling blockchain payments, but we are about to turn our attention to the US.” He indicated a focus on the US market as the primary objective, stating, “Among all the international markets, we are leaning towards the US first. That’s our first priority. We are in the process of discussing our application with the Federal Reserve.”
Strategic Backing and Funding:
Fnality, supported not only by UBS and Goldman Sachs but also by financial industry leaders like Santander, BNP Paribas, BNY Mellon, Barclays, Nasdaq Ventures, and Nomura, secured £77.7m in a series B funding round led by Goldman Sachs and BNP Paribas in November 2023.
Ram emphasized the alignment of shareholder interests, noting, “All of our shareholders have businesses in the US. They want to use this blockchain-based system for dollar transactions as well.”
Global Expansion Plans:
While emphasizing the US market as a priority, Ram conveyed broader aspirations, stating, “The US is not the only market we are looking at. We have plans for Europe and we also want to include Japan and Canada in the future.”
Blockchain Trends in Financial Services:
The adoption of blockchain technology within the institutional financial services sector has experienced notable growth following initial interest from retail players. Major financial institutions, such as Goldman Sachs and UBS, have chosen to invest in blockchain companies, while JPMorgan established a dedicated unit exclusively focused on blockchain technology and tokenization.
JPMorgan’s Onyx, launched in 2020, has successfully settled over $300 billion in transactions through JPM Coin. In a November interview with FN, Onyx CEO Umar Farooq outlined the firm’s strategic plans to expand its blockchain-based payment services, indicating an interest in incorporating sterling.
Conclusion:
Fnality International’s decision to extend its blockchain-based payment system to include the US dollar aligns with broader industry trends, reflecting the increasing acceptance and integration of blockchain technology within financial institutions. The strategic backing from prominent global financial entities positions Fnality to play a pivotal role in shaping the future landscape of blockchain-based financial transactions.