Euroclear invests in Ethereum-based Fnality

Euroclear, a specialist in domestic and cross-border securities settlements in almost 50 currencies with clients in more than 120 countries. has announced an investment in Ethereum-based payment system Fnality.

The strategic investment will further Euroclear’s DLT capabilities and allow it “to provide an innovative solution for the settlement of digital securities against digital cash on DLT“. 

This is not Euroclear’s first involvement with DLT and tokenized securities. It recently participated in a CBDC “experiment” commissioned by the French Central Bank to settle government bonds on DLT. Euroclear said that this test confirmed, “that blockchain technology is suitable to manage post-trade market operations in CBDC“. 

About Fnality

Fnality, founded in 2019 by a consortium of banks, including Santander, BNY Mellon, Barclays, Credit Suisse and Lloyds, is “a network of next-generation wholesale payment systems (each referred to as a Fnality Payment System) that uses DLT for processing and record-keeping”. A global roll-out of Fnality’s infrastructure is planned for this year, and will provide a near-real-time 24/7 settlement capability for CBDCs while facilitating interoperability with other platforms.

CEO of Fnality Rhomaios Ram said that “the institutional commercialisation of DLT is being realised through Fnality’s creation of a network of distributed payment systems using blockchain technology. As we progress from testing to real-world implementation, welcoming Euroclear Group as an investor into the Fnality International consortium will significantly enhance the diversification of Fnality’s network and expand our industry footprint, especially around Financial Market Infrastructure. This has obvious positive implications for the execution of our business and use case strategy.”

See Also

Ripple’s CBDC Innovate 2023 Challenge Attracts 700 Registrations