On Monday, Euroclear, a securities clearing company that claims to have more than €37.6 trillion in assets under custody, announced an investment in Fnality, a consortium of financial institutions focused on the regulated adoption of tokenized assets and markets, for an undisclosed amount. Meanwhile, Euroclear is also focusing on developing its distributed ledger technology, or DLT, to settle digital securities against 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 operations, and interest payment servicing. Founded in 2019, Fnality International said it seeks to improve the efficiency of central banks for payment settlement.. Its notable shareholders include Barclays, CIBC, Credit Suisse, ING, Mizuho Bank Nasdaq and UBS. In relation to this event, the General Director of Fnality International, Rhomaios Ram, has stated the following
“Welcoming Euroclear Group as an investor in the Fnality International consortium will significantly enhance the diversification of Fnality’s network and expand our footprint around the financial markets infrastructure.”
For its part, Lieve Mostrey, CEO of Euroclear Group, added: “We are delighted to be working with Fnality and our clients to shape a wholesale digital cash and digital securities settlement solution for the benefit of the entire industry.” Previously, Euroclear had led a central bank digital currency, or CBDC, experiment to settle French government bonds in the DLT in a partnership with the Banque de France. The Euroclear Group settled the equivalent of €992 billion in securities transactions in 2021 through 295 million transactions.
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