Euroclear invests in wholesale markets DLT settlement firm Fnality
Summary
With a global roll-out set to commence in 2022, Fnality’s network of distributed Financial Market Infrastructures (dFMIs) is expected to provide near real time settlement capability in a central bank money-like digital cash asset while facilitating interoperability with other platforms. This investment follows the recent Euroclear-led Central Bank Digital Currency (CBDC) experiment to settle French government bonds on DLT, commissioned by the Banque de France. The Bank of England (BoE) recently announced the launch of a new omnibus account model to enable its real-time gross settlement (RTGS) service to interface with a wider range of innovative payment systems, including those using DLT. Effectively, an operator of a payment system can hold funds in the omnibus account to fund its participants’ balances with central bank money; and support a wide range of high-value payments, including a commercial bank buying government bonds. This has obvious positive implications for the execution of our business and use case strategy.” Lieve Mostrey, CEO Euroclear Group, said in a statement: “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.