Traditional Finance Embracing Crypto: Fnality International Raises $95 Million in Series B Funding

The Rise of Traditional Finance in Crypto

The world of crypto has always been seen as unconventional, with its cypherpunks and fervent online community. However, traditional finance is starting to take notice and participate in the crypto space. Fnality International, a UK-based startup that aims to facilitate cash transfers between financial institutions using blockchain technology, recently announced that it raised approximately $95 million in a Series B funding round led by Goldman Sachs and BNP Paribas. This brings Fnality’s funding total to around $163 million since its launch in 2019.

Others who participated in the funding round include prominent financial institutions such as BNY Mellon, Barclays, Nasdaq Ventures, UBS, Banco Santander, DTCC, Euroclear, Nomura, and WisdomTree. The CEO of Fnality, Rhomaios Ram, declined to disclose the updated valuation of the firm.

The Resilient Use Cases of Blockchain Technology

Goldman Sachs’ global head of digital assets, Mathew McDermott, highlighted the potential of Fnality’s blockchain technology in providing a resilient way for institutions to utilize central bank funds across a diverse range of use cases. With traditional finance increasingly exploring the blockchain, Wall Street’s interest in the technology is growing. There is also growing optimism around the approval of a spot Bitcoin ETF, which could open up the cryptocurrency market to significant capital inflows from traditional investors.

Ram, a former Deutsche Bank executive who joined Fnality in 2017, led a research project supported by 16 financial institutions to explore the feasibility of using blockchain for cash transfers. In 2019, buoyed by positive results from the research, Fnality was launched with the backing of these institutions.

A Convergence of Traditional Finance and DeFi

Fnality has since developed a private blockchain network, inspired by Ethereum, that enables banks to transfer money continuously throughout the day. While the network is not yet live, Ram has stated that a full launch is imminent in the UK, followed by expansion into the US and other markets. Ram envisions Fnality as a convergence of traditional finance and decentralized finance (DeFi) methodologies. He believes that the innovations within the crypto/DeFi space have the potential to revolutionize the finance industry, and the challenge lies in integrating them into a regulated environment.

Source: Goldman Sachs and BNP Paribas lead $100 million funding round for Fnality International