Nomura Joins Other Major Financial Players to Back Blockchain Startup Fnality – Nomura Holdings (NYSE:NMR)
Tokyo-based bank Nomura Holdings Inc. NMR have invested in Finalitya blockchain-based interbank payment and settlement network now sponsored by 17 major financial institutions.
What happened: After raising £50 million ($54 million) in Series B funding in 2019, Fnality is about to raise a similar amount again.
“The transformation of financial services driven by blockchain technology is clearly accelerating, and we believe Fnality is uniquely positioned to capitalize on the significant opportunities this development presents,” said Angel Issa, Global Head of Corporate Development and Strategic Investments at Nomura.
“We look forward to leveraging Fnality’s technology and expertise to continue to deliver differentiated value to our customers and partners globally,” added Issa.
See also: Nomura enters the Metaverse
Originally known as the Utility Settlement Coin, Fnality tokenizes funds deposited in a central bank and enables the settlement of DLT-based transactions with on-chain digital currency.
“We at Fnality are delighted to draw on Nomura’s extensive capital markets experience across Japan, the US and Europe as we expand beyond the UK,” said Fnality CEO Rohomaios Ram.
Fnality’s other investors include Bank of New York Mellon BK, Banco Santander SAN, Barclays BCS, CIBC CM, Commerzbank CRZBY, Credit Suisse CS, Euroclear, ING Group ING, KBC Group KBC, Lloyds Banking Group LIE, Mizuho Financial Group MFG, MUFG Group MUFG, Nasdaq Inc. NDAQ, SMBC, State Street STTand UBS Group UBS.
Why it matters: After Mizuho, MUFG and SMBC, Nomura is the fourth Japanese company to support Fnality.
Japan has emerged as one of the most successful countries when it comes to issuing security tokens.
Nomura, which has been active in the blockchain and capital markets for several years now, also founded Boostry, which offers a tokenization platform used for bonds and other securities. It also established Laser Digital Holdingsa company that deals in digital assets, in Switzerland.
What will be next: Since HM Treasury has formally recognized Fnality as a payment system, it is expected to introduce its first currency, the British pound, next month, followed by the euro, US dollar, Canadian dollar and Japanese yen.
Fnality is reportedly making progress with its digital euro effort, which was backed by an investment made by Euroclear earlier this year.
The necessity of settlement with cash on the ledger in central bank money will become more urgent as the issuance of securities progresses.
