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Bank-backed stablecoin project Fnality celebrates first anniversary

Fnality is pleased to announce its one-year anniversary in its drive to enable peer-to-peer markets.

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A private sector initiative supported by 15 major Financial Institutions, Fnality is building a regulated payment system to support the growing industry adoption of tokenised assets and marketplaces. The Fnality Global Payments solution will enable new post-trade processes which will lead to significant reductions in risk and cost, remove many inefficiencies of fragmented liquidity, as well as enabling new ways of meeting financial obligations.

Fnality Global Payments will comprise a series of national systems, each regulated in its home jurisdiction. The initial five currencies will be CAD, EUR, GBP, JPY & USD, with balances fully pre-funded with fiat currency transfers. The settlement asset will be 100% back by fiat collateral held with a central bank.

In today’s wholesale banking arena collaboration is key, particularly in the area of transaction settlement. Fnality has harnessed DLT to create a solution that will enable process evolution, including reducing the reliance on intermediaries. Key to this improved liquidity management is inter-operability. The Fnality Global Payments proposition allows multiple settlement processes a single pool of liquidity to be connected to many platforms and business applications.

In Fnality’s first year of operation, laying the foundation for the next generation of payments, key milestones of note have included:
• Central Bank collaboration: Working with the central banks to ensure that the current toolsets and policies support and allow what is needed.
• New Technology Stack partnerships: Establishment of new partnerships with best of breed technology providers including Adhara, Broadridge, Epam Systems Inc. and assurance partner EY. Bringing together a series of components ranging from the underlying protocol, through to the hardware security mechanism, SWIFT services and user interfaces.
• Inter-operability trials: Successful proof of concepts with industry platforms including Finteum, which aims to improve intraday liquidity trading in a central limit order book and Adhara. The trials demonstrated how FX orders can be pre-cleared and settled immediately upon execution.
• Shareholder Preparation: the 15 institutions are working through their new business approval processes in order to capitalise on the opportunities that Fnality enables.

Rhomaios Ram, CEO of Fnality said “It gives me great pleasure to announce our first anniversary and call out our significant achievements in supporting the global payments paradigm shift. “I would like to thank our team and our shareholders who have been instrumental in our success thus far. We are fully engaged with the central banks and making positive progress towards approval.”

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