London-based fintech firm Fnality International is eyeing the United States market to expand its blockchain-based payments system following its successful sterling launch in 2023.
The startup, backed by some of the world’s largest banks, settled its first live transaction in December. It involved the participation of the Bank of England (BoE), which held the startup’s Omnibus Account and commercial banks, including Lloyds (NASDAQ: LLDTF) and UBS (NASDAQ: UBS).
“…we are about to turn our attention to the U.S.,” CEO Rhomaios Ram revealed in a recent interview.
“Among all the international markets, we are leaning towards the U.S. first. That’s our first priority. We are in the process of discussing our application with the Federal Reserve,” he added.
Fnality conducted its second fundraising round in November 2023, raising £77.7 million ($95.09 million). Goldman Sachs (NASDAQ: GS) and French giant BNP Paribas (NASDAQ: BNPQF) led the round. Other participants included the American settlement organization Depository Trust and Clearing Corporation (DTCC), its European counterpart Euroclear, and investment manager WisdomTree (NASDAQ: WT).
Investors who participated in the first round, including Lloyds Bank, BNY Mellon (NASDAQ: BK), Banco Santander (NASDAQ: SAN), UBS, and State Street (NASDAQ: STT), also pitched in with additional investment.
All these backers are either based in the U.S. or have extensive operations there, making the country the natural target of expansion, Ram said.
“All of our shareholders have businesses in the U.S. They want to use this blockchain-based system for dollar transactions as well,” he told FN London.
Beyond the U.S., Fnality is also exploring other European countries, Canada, and Japan for future expansion.
Fnality is one in a growing list of blockchain solutions targeting the traditional financial industry. Despite the advances in technology, this multi-trillion-dollar sector has remained impervious to these advancements, with funds transfers, clearing, settlements, and other processes still taking days) and costing a pretty penny.
Blockchain is one of the key technologies transforming the sector. Some startups like Fnality are impacting settlements, while others like Centbee are transforming cross-border transfers.
Legacy players are building in-house solutions, too. JPMorgan (NASDAQ: JPM) was among the first to dive in, launching its JPM Coin stablecoin for wholesale transfers four years ago. Others, like Bank of America (NASDAQ: BAC), continue to invest in blockchain and combine it with other emerging technology like artificial intelligence (AI).
Watch: Yalla Limited’s Dereck Hoogenkamp—We’re bridging banking & blockchain
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
Credit: Source link