Japanese banking giant Nomura has invested in London-based blockchain payments firm Fnality, according to an announcement from Fnality on Monday.
The financial services firm will also join Fnality’s international consortium of global banks, which are focused on building a regulated, peer-to-peer payments system based on digital assets.
Fnality already counted 16 major financial institutions as backers: Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, Credit Suisse, Euroclear, ING, KBC Group, Lloyds Banking Group, Mizuho Financial Group, MUFG Bank, Nasdaq, Sumitomo Mitsui Banking Corporation, State Street Corporation and UBS.
Formed in 2019 and initially known as Utility Settlement Coin (USC), Fnality aimed to create a network of wholesale blockchain-based payments systems denominated in five currencies: U.S. dollars, Canadian dollars, euros, British pounds and yen. The tokenized currencies would be fully backed by fiat currency held by the relevant central bank.
In September 2020, Reuters reported that the project had faced delays in its bid for regulatory approval.
Fnality's fundraising attempts
The details of the investment from Nomura were not disclosed. However, Fnality plans to use the investment to expand its presence in capital markets across Europe, the U.S. and Japan, it said.