Euroclear joins consortium of banks in the blockchain payment space

Euroclear joins consortium of banks in the blockchain payment space

The expanding space of cryptocurrency and blockchain segment is fostering large-scale investments from financial institutions round the globe.

Financial service provide Euroclear announced that it has joined a pool of banks specialising in development of payment systems for tokenized assets emerging as the latest move in the direction of collaborative efforts between established institutions and young crypto tech developers.

The Belgium-based securities settlement house nabbed a minority stake in the 3-year-old consortium, dubbed Fnality, moving further into the distributed ledger technology (DLT) or blockchain tech which drives growth of crypto assets such as bitcoin.

With expertise in bond trades and stock settlements – helping execute the final step of transaction which determines asset ownership after cash is swapped – Euroclear aims for settlement of tokenised assets or digital securities, ensuring higher efficiency and faster transactions.

Backed by existing shareholders consisting of a dozen global banks, Fnality believes that with Euroclear’s participation, the consortium will be able to amplify its footprint in market infrastructure as it works towards moving forward from testing to implementing in 2022.

Rhomaios Ram, Fnality Chief Executive, confirmed that the involvement will evidently showcase positive implications from a business point of view.

Fnality is on a mission to remove the cumbersome processes and paperwork that complicates the transaction process conducted between financial institutions via digital currencies.

In 2021, the Bank of England approved a new account at the central bank for a broad spectrum of anticipated payments systems comprising of those driven by blockchain.

As of now, Fnality awaits the BoE to permit its application to become an operator and is expected to open its account with pound sterling payment system in October.

The financial service provider owned by London Stock Exchange, and Euronext along with several other banks and exchanges, settled an equivalent of $1,095 trillion in securities last year. 

BNY Mellon, UBS, Barclays, Sumitomo Mistui Banking Corporation, CIBC, State Street Corporation, Commerzbank, Nasdaq, Mizuho Bank, Credit Suisse, KBC Group, MUFG Bank, ING, and Lloyds Banking Group are the founding shareholders of Fnality.

Source Credit: https://www.fxempire.com/news/article/euroclear-joins-bank-backed-blockchain-payment-system-941116