London-based blockchain payments firm Fnality has secured $136 million in a Series C funding round led by major banks.
“The closing of our Series C reflects a shared conviction that the future of money demands a new foundation,” Fnality CEO Michelle Neal anounced.
We are proud to announce the successful close of our #SeriesC funding round, which marks a significant milestone in our mission to build a new global settlement network.
— Fnality (@fnality) September 23, 2025
Read our official PR: https://t.co/fYJFnA6bxS pic.twitter.com/orYIHo6HY3
Modernizing wholesale payments with blockchain
Fnality, which launched its sterling-denominated Fnality Payment System in the U.K. last year, aims to modernize wholesale payments using a blockchain infrastructure tied to central bank reserves.
The new capital will support expansion into U.S. dollar and euro markets, pending regulatory approvals.
By leveraging distributed ledger technology (DLT), Fnality simplifies institutional settlements, enabling real-time repo transactions, tokenized securities settlement, and cross-currency payments. The platform is designed to bridge traditional finance with tokenized markets while improving liquidity and reducing settlement risks.
Regulatory hurdles ahead
While Fnality has obtained U.K. approval, expanding into the U.S. and euro markets requires navigating more complex regulatory landscapes. The Federal Reserve and the European Central Bank have been cautious about granting settlement access to blockchain-based networks.
Fnality’s model, which anchors tokenized cash to central bank reserves, may make it easier for regulators to accept, but oversight will remain a critical factor for the company’s cross-border ambitions.
Competing blockchain settlement solutions
Fnality operates in a competitive environment, alongside platforms such as JPMorgan’s Kinexys and Paxos. JPMorgan’s system allows institutions to settle cash transactions using JPMD, a bank-issued digital token, and has already processed collateral settlements via blockchain technology. Paxos, meanwhile, offers tokenized settlement for securities, streamlining operational processes for financial institutions.
What sets Fnality apart is its focus on central bank-backed digital cash. This approach provides an extra layer of security and regulatory alignment, while offering real-time settlement across multiple currencies. By combining neutral infrastructure with high compliance standards, Fnality positions itself as a scalable solution for the institutional market.
Fnality CEO Michelle Neal highlighted that the company’s blockchain-based settlement systems provide 24/7 payment rails, real-time settlement, and enhanced liquidity.
Institutional backing
Institutional investors see Fnality as a way to modernize settlement systems and reduce operational risk.
WisdomTree CEO Jonathan Steinberg described Fnality’s platform as a “critical foundation for tokenized finance,” Citi’s head of digital strategy, Deepak Mehra, added that Fnality aligns with the bank’s strategy to build more efficient and interoperable digital asset payment systems.
Bank of America, Citi, KBC Group, Temasek, Tradeweb, and WisdomTree. Returning investors such as Goldman Sachs, Santander, Barclays, and UBS also participated, shows institutional confidence in blockchain-based settlement infrastructure.
Industry Momentum
Fnality’s growth coincides with broader innovations in payment rails.
Recently, Google launched an open-source protocol enabling AI applications to send and receive payments, including stablecoins, in partnership with Coinbase, Salesforce, American Express, and over 60 other firms.
The protocol works with both traditional rails and emerging crypto options, reflecting the increasing use of dollar-pegged stablecoins in AI-driven payment systems.
Gunel Ismayilova
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