Belgium-based securities clearing firm Euroclear has announced investing in Fnality, an international consortium of global banks and financial market infrastructures. Finality is focused on building regulated payment systems to support the adoption of tokenised assets and marketplaces.
The size of the investment has not been disclosed.
Euroclear’s partnership with Finality is part of the company’s further development of its Distributed Ledger Technology (DLT) capabilities. The clearing firm aims to provide a solution for the settlement of digital securities against digital cash on DLT. The solution is meant to improve speed and efficiency for a range of post-trade operations from primary market issuance to secondary market and collateral trades, and servicing interest payments.
The institutional commercialisation of DLT is being realised through Fnality’s creation of a network of distributed payment systems using blockchain technology. As we progress from testing to real-world implementation, welcoming Euroclear Group as an investor into the Fnality International consortium will significantly enhance the diversification of Fnality’s network and expand our industry footprint, especially around Financial Market Infrastructure. This has obvious positive implications for the execution of our business and use case strategy.
Euroclear recently led a central bank digital currency (CBDC) experiment to settle French government bonds on DLT. This experiment, commissioned by the French central bank, confirmed the DLT is suitable for managing post-trade market operations in CBDC.
Lieve Mostrey, CEO Euroclear Group, commented:
As an open financial market infrastructure our approach to innovation has always been to develop services in close co-operation with clients and pioneering networks and infrastructures. We are pleased to be working with Fnality and our clients in shaping a cutting-edge solution on wholesale digital cash and digital securities settlement for the benefit of the whole industry.
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