Today, I woke up to a rush of news reports covering blockchain-focused company Fnality’s latest successful funding round.
The round was led by Goldman Sachs and BNP Paribas, joined by a number of other banks, raising a total of £77.7 million ($95.2 million) – no mean feat in today’s climate.
CEO Rhomaios Ram said that he felt that “small pockets” of optimism were finally emerging in the funding space, despite it being difficult to close the round.
So what exactly are they so optimistic about?
Fnality has been building a kind of private CBDC made for wholesale transactions. All the tokenized funds are backed by central bank currencies, and settlement happens in real time.
Last year, in June 2022, at one of our London meet-ups, Ram spoke about the potential this could have for interbank transfers. He described the solution as “the ultimate stablecoin,” harnessing all the benefits of stablecoins with the added security of being backed by central bank money.
Back then, the plan was to launch in October 2022, starting in England with a sterling-backed payment system – £FnPS (these acronyms are getting really out of hand). But ongoing development hung on the Bank of England. “Her Majesty’s Treasury needs to designate us as a systemically important payment system,” he said at the time.
That designation came in August, and the UK released its regulatory plan for stablecoin supervision just last week. Some of the requisites for BoE oversight were very similar to Fnality’s business model, making them somewhat of an outlier in the stablecoin space.
Fnality is poised for execution. Now all they need is the regulatory nod.
FEATURED
Goldman, BNP Lead $95 Million Investment in Blockchain Firm Fnality
Fnality International Ltd., which is developing a blockchain-based wholesale payment system, raised £77.7 million ($95.2 million) in a funding round led by Goldman Sachs Group Inc. and BNP Paribas SA.
FROM FINTECH NEXUS
| Embedded insurance is revolutionizing the industry By Fintech Nexus Staff Embedded insurance is the key to serving younger demographics and for building customer trust. Sponsored article by Trustage. A Rise in Recommerce Could Bring Payments Opportunities By Isabelle Castro Margaroli Recommerce marketplaces have given consumers opportunities to save and make money. Payment orchestration has let them down. Until now. |
| PODCAST The Fintech Coffee Break – Nico Simko, Clair This week, Isabelle spoke to Clair’s Nico Simko about the earned wage access space and why Clair approaches EWA as a loan. Listen Now |
| UPCOMING EVENTS The Most Important Policy Event of the Year! – Fintech Policy Summit Confirmed speakers include Congressman French Hill, Chairman of the Subcommittee on Digital Assets, Mark… See Details |
| WEBINAR Cash Flow is Here: Top Use Cases Helping Underwriters Today Nov 15, 2pm EST Cash flow underwriting has gone from obscurity to mainstream in just a few short years. Today, many leading fintechs are… Register Now |
ALSO MAKING NEWS
- USA: Capital One seeks dismissal of lawsuit brought by disgruntled saversThe bank was recently sued by customers who say they were misled into thinking that their savings accounts were earning competitive rates. Capital One responded with a series of arguments for why the case should be thrown out.
- USA: CFPB, regulators boost thresholds for Truth in Lending standards by 4.5%The Consumer Financial Protection Bureau, Federal Reserve and other banking regulators rolled out their annual adjustments for the thresholds that determine whether activities are eligible for enhanced standards.
- Global: Making the case for women-owned banksThree women-owned banks have emerged in the last several years with the shared goal of increasing access to capital for female entrepreneurs.
- Global: Alphabet-backed GoCardless considers takeovers as CEO expects a barrage of consolidationGoCardless CEO Hiroki Takeuchi said that his firm was “very open minded” about the prospect of mergers and acquisitions.
- Global: British fintech Wise reports 280% jump in profit as higher interest rates boost incomeBritish fintech Wise reports 280% jump in profit amid higher interest rates
- Global: Brex’s Quarterly Revenue Growth Slows to 1%, Following Post-SVB Growth SpurtAlmost no startup benefited more from the collapse of Silicon Valley Bank than Brex, which saw a surge in deposits from young companies that use its credit card and cash management products. But that growth spurt has petered out in recent months.
- Global: BNPL companies face grim outlook, Moody’s saysFierce competition, persistent losses and regulatory constraints are likely to push some players out of the buy now, pay later market, Moody’s predicted.
- USA: A Fintech Titan In Community Banker’s ClothingAlready a force to be reckoned with in Silicon Valley, once-and-future billionaire Jackie Reses is out to disrupt financial services with a 95-year-old Missouri bank—without disturbing federal regulators.
