Euroclear invests in Fnality to advance its digital ledger technology strategy
On Monday, Euroclear, a securities clearing house that claims to have over €37.6 trillion in assets under safekeeping, announced an investment in Fnality, a consortium of financial institutions focused on regulated asset adoption and of token markets, for an undisclosed amount. Meanwhile, Euroclear is also focused on developing its Distributed Ledger Technology, or DLT, to settle digital securities for digital cash through the partnership.
The solution aims to increase the speed and efficiency of post-trade operations in areas such as market issuance, collateral transactions and servicing of interest payments. Founded in 2019, Fnality International said it seeks to improve the efficiency of central banks for payment settlements. Its notable shareholders are Barclays, CIBC, Credit Suisse, ING, Mizuho Bank Nasdaq and UBS. Regarding the development, Fnality International CEO Rhomaios Ram said:
“Welcoming Euroclear Group as an investor in the Fnality International consortium will significantly strengthen the diversification of Fnality’s network and expand our footprint around financial market infrastructure.
Meanwhile, Lieve Mostrey, CEO of Euroclear Group, added: “We are delighted to be working with Fnality and our clients to develop a digital wholesale cash and securities settlement solution for the benefit of the whole industry”. Previously, Euroclear conducted a central bank digital currency, or CBDC, experiment to settle French government bonds on the DLT in partnership with the Banque de France. The Euroclear group settled the equivalent of €992 trillion (approximately $1.09 quadrillion) in securities transactions in 2021 out of 295 million transactions.