Bank of America and Citi are amongst a group of global financial institutions that have raised $136 million in a Series C funding round for Fnality.

Fnality is the operator of “next generation” wholesale payment systems regulated by central banks.

The organisation said that this latest capital raise is a significant milestone for its mission to build a new global settlement network, enabled by distributed ledger technology (DLT), that bridges today’s wholesale markets with emerging institutional tokenised assets.

The funding round was also led by WisdomTree, KBC Group, Temasek and Tradeweb.

The lead investors were joined by existing investors Santander, Barclays, BNP Paribas, DTCC, Euroclear, Goldman Sachs, ING, Nasdaq Ventures, State Street and UBS.

“This partnership is an important milestone in the digitisation of institutional markets," said Jim DeMare, co-president of Bank of America. "By embracing new technological solutions, we can modernise the market structure and build a foundation for institutions to operate with greater speed and efficiency."

Deepak Mehra, head of digital strategy at Citi Markets said that Fnality’s work in wholesale payments aligns with the company's ongoing commitment to delivering innovative solutions for the digital asset landscape.

"Their regulated DLT-based approach offers a compelling pathway for more efficient and resilient financial market infrastructure," continued Mehra.

Speaking about the funding raise, chief executive of Fnality International Michelle Neal said that with 24/7 payment rails, real-time settlement, and enhanced liquidity management, the organisation is building a future that "fuses decentralised finance’s operational optimisation with traditional finance’s capital efficiency."

She added: "This investment accelerates our journey toward a financial market infrastructure that is more resilient, more inclusive, and ready for the hybrid future of global finance.”

Fnality said that following the launch of its Sterling Fnality Payment System in the UK in December 2023, the ongoing strategic initiatives of the organisation include extending the network’s footprint to other major currencies, delivering solutions that optimise liquidity management, and providing settlement interoperability for innovations such as stablecoins and tokenised deposits.

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