Fnality Secures $136M Funding to Scale Regulated DLT Payment Infrastructure

Blockchain payment networks just got a nine-figure vote of confidence from institutional investors.

The Institutional Backing

Financial heavyweights are betting big on distributed ledger technology's potential to overhaul legacy settlement systems. This funding round signals growing institutional appetite for blockchain-based financial infrastructure that operates within regulatory guardrails.

Building Regulated Rails

The capital injection fuels Fnality's mission to create payment systems that merge blockchain efficiency with traditional finance compliance. Their approach targets wholesale banking transactions—potentially cutting settlement times from days to seconds while maintaining regulatory oversight.

The Cynical Take

Because nothing makes traditional finance embrace innovation faster than the prospect of saving millions in operational costs—even if they have to hold their noses while doing it.

This investment demonstrates that serious money continues flowing into blockchain infrastructure projects that bridge digital asset capabilities with existing financial frameworks.

From pilots to plumbing: Fnality’s next phase

According to Fnality, its immediate focus is on expanding into additional major currencies, delivering tools for more efficient liquidity management, and creating interoperability with the growing universe of stablecoins and tokenized deposits.

The practical application of these initiatives is already being demonstrated through the live Sterling Fnality Payment System. Since its launch, the system has enabled various use cases, including the real-time settlement of tokenized securities via delivery versus payment, on-demand foreign exchange payment-versus-payment settlement, and real-time repo transactions, accelerating the evolution toward more integrated and liquid capital markets.

“With 24/7 payment rails, real-time settlement, and enhanced liquidity management, we’re not just modernizing wholesale payments, we’re building a future that fuses Decentralized Finance’s operational optimization with Traditional Finance’s capital efficiency. 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,” Michelle Neal, CEO of Fnality International, said.

Bank of America’s Co-President Jim DeMare framed the deal as part of a broader modernization push. He said the bank views Fnality’s settlement model as a way to streamline institutional market structure, enabling trades to clear with greater speed and efficiency while laying a foundation for digital finance that can scale.

Fnality’s credibility is rooted in its regulatory standing. HM Treasury

recognized The Sterling FnPS as a systemically important payment system before it commenced controlled live payments in December 2023.

This designation paved the way for it to become the world’s first regulated DLT-based wholesale payment system. Its shareholder base includes Banco Santander, BNY Mellon, DTCC, Euroclear, Goldman Sachs, Nasdaq Ventures, and State Street, among others.