On Monday, Euroclear, the securities clearing company that claims more than €37.6 trillion in assets, announced an investment in Fnality, a consortium of financial institutions dedicated to the regulated use of assets and reputable markets, for an undisclosed amount. Meanwhile, Euroclear is also developing distributed ledger technology, or DLT, to settle digital securities for digital cash through a partnership.
The solution aims to improve the speed and efficiency of post-trade transactions in areas such as market issues, additional transactions and interest payment services. Fnality International, which was founded in 2019, said it wanted to improve the efficiency of central banks in settling payments. Notable shareholders include Barclays, CIBC, Credit Suisse, ING, Mizuho Bank Nasdaq and UBS. Regarding development, Romaios Ram, CEO of Fnality International, said:
“Inviting Euroclear Group as an investor in Fnality International will significantly increase the diversity of the Fnality network and expand our presence in the financial market infrastructure.”
Meanwhile, Leif Mostray, CEO of Euroclear Group, added: “We are delighted to work with Fnality and our clients to shape a wholesale settlement solution for digital money and digital securities for the benefit of the entire industry.” Euroclear previously experimented with a central bank digital currency, or CBDC, to settle French government bonds on DLT in cooperation with Banque de France. . In 2021 through 295 million transactions.