Fnality to Integrate with DTCC Launchpad

Fnality says it is collaborating with post-trade market infrastructure provider DTCC on the potential to integrate its wholesale payments system as a payment rail with DTCC’s Launchpad, which was recently-launched to support the testing and progress of emerging digital asset technologies on their path to production.

The firm says the integration would mark “a major step forward in building institutional-grade infrastructure for digital asset markets, enabling secure, on-chain payment-versus-payment (PvP) and delivery-versus-payment (DvP) settlement using a digital representation of funds held at the central bank.  

It adds that the integration would mean asset transfers and payments could be executed atomically within a secure and resilient environment. It would also enable users to consolidate liquidity into a single, unified pool, leading to more efficient operations, enhanced intraday liquidity management, and “a clear progression toward a fully digital capital markets infrastructure”.  

Fnality’s wholesale payments system participated in DTCC’s Great Collateral Experiment, which was hosted on Launchpad, and demonstrated how tokenised assets can be effectively mobilised as collateral. The process included earmarking funds in the Fnality testing environment, onboarding the investor’s account onto DTCC’s ledger, and executing a PvP test transaction that settled instantly.  

“Our collaboration with DTCC goes back to 2023, when we jointly demonstrated a DLT-based model for atomic, real-time DvP settlement,” observes Michelle Neal, CEO at Fnality International. “This collaboration has expanded to DTCC’s Digital Launchpad initiative and demonstrates how an on-chain representation of central bank reserves can unlock the full value of institutional tokenised assets. This is a critical step towards realising our vision for frictionless, 24/7 wholesale financial markets, where tokenised assets can move instantly, securely and with finality.”  

Dan Doney, CTO, Digital Assets, at DTCC, adds, “As the financial industry unlocks the potential of blockchain in the market, initiatives like DTCC’s Great Collateral Experiment demonstrated the power of unified rails for cash and securities transactions. Fnality’s central bank-backed payment system brings the level of trust, finality and programmability required to support real-time, atomic settlement. The collateral use case also demonstrated the power and potential of open, interoperable platforms to enhance collateral mobility, drive operational efficiency and lay the foundation for a truly digital-first financial ecosystem.”