Fnality Payment Systems - DLT-Based Central Bank Money

Fnality's payment systems deliver institutional-grade, DLT-based payment infrastructure that tokenizes central bank money for wholesale banking operations. The company operates the world's first fully regulated distributed ledger-based payment system and is expanding to additional currencies.

Sterling Fnality Payment System (£FnPS)

The £FnPS is the flagship operational system, regulated by the Bank of England. Each unit of digital cash is 1:1 backed by funds held at the central bank, providing the safety and institutional quality of central bank money with the innovative functionality of blockchain technology. The system operates on a private Ethereum blockchain network with 24/7 availability for instant settlement.

Core Capabilities

• Real-time atomic settlement: Transactions achieve instant finality with no settlement risk
• 24/7 continuous operation: Unlike traditional payment systems limited to business hours
• Central bank money on-chain: Digital representation of funds held directly at the Bank of England
• Delivery versus Payment (DvP): Seamless integration for atomic securities settlement
• Payment versus Payment (PvP): Enables cross-border settlement use cases
• Active liquidity optimization: Real-time intraday liquidity management

Security and Architecture

Multiple security layers including encrypted node communication, transaction signing with participants' private keys, and continuous security protocol updates. The decentralized ledger architecture prevents single points of failure through distributed consensus while enhancing security against fraud.

Regulatory Compliance

As the first central bank regulated DLT-based payment system, £FnPS sets the standard for regulatory compliance in blockchain-based financial infrastructure, with regular audits aligned to Bank of England regulations.

US Dollar Payment System

Fnality's USD payment system represents the expansion of this DLT-based payment infrastructure to the United States market. When operational alongside £FnPS, the two systems will enable seamless cross-border settlement on a PvP basis, addressing a major pain point in international wholesale banking.

The USD system has strong backing from major US financial institutions including Bank of America, Citi, Bank of New York Mellon, Goldman Sachs, and State Street. Integration work with DTCC's Digital Launchpad signals progress toward bringing these capabilities to the US market.

Use Cases

The Fnality Payment Systems support wholesale banking use cases including securities settlement, cross-border payments, collateral management, and treasury operations. Major banks including BNP Paribas and Lloyds Banking Group have completed live transactions on the platform.

Strategic Vision

Fnality's vision is to create a global network of interconnected payment systems across major currencies, enabling seamless cross-border settlement and serving as critical financial market infrastructure for tokenized asset markets.