Fnality, a blockchain-based wholesale payment infrastructure firm regulated by central banks, has raised $136 million in a Series C funding round to expand its global settlement network and develop systems for additional currencies.

Fnality’s technology reduces settlement times, increases transparency, and lowers costs, aligning with the broader digitalization trend in financial services.

Regulatory support, such as the UK government’s December 2024 designation of Fnality’s settlement finality, underscores its systemic importance and potential to reshape global financial infrastructure.

Fnality’s progress reflects a broader trend of traditional financial institutions exploring blockchain technology to improve efficiency and reduce risks, with efforts to integrate decentralized finance into regulated markets.

Leading financial institutions, including WisdomTree and Bank of America, view Fnality as a critical infrastructure provider that is modernizing market operations through blockchain and tokenized settlement systems.

The development of hybrid models combining traditional and decentralized finance aims to enable 24/7 instant settlement, making global markets more liquid, transparent, and efficient.

Major banks like JPMorgan and HSBC are developing digital products related to tokenization, emphasizing its growing importance in enabling secure trading and settlement of real-world assets.

The company's solution enables banks to settle trades using digital cash backed by central bank reserves, facilitating faster, more transparent settlement of tokenized assets.

The new capital will be used to enhance liquidity management tools, support settlement of various tokenized assets like securities and stablecoins, and improve interoperability across different currencies.

Recent regulatory developments, including JPMorgan’s trial of a dollar deposit token and a USD stablecoin debit card linked to a crypto project, are fueling increased activity in the crypto and tokenization space.

Industry experts see Fnality’s growth as a sign of rising institutional interest in tokenized assets and a potential blueprint for combining traditional finance with decentralized solutions.

Tokenization offers benefits such as improved security and fraud prevention, but faces challenges including technological gaps and adoption hurdles, which industry leaders are actively working to overcome.