Financial institution BNP Paribas initiates transactions on the decentralized ledger technology (DLT) platform Fnality, successfully executing a swap payment.
Fnality's distributed ledger technology (DLT) settlement system is making waves in the financial industry, offering significant benefits such as risk reduction, real-time and secure settlement, and programmability enabled by tokenized central bank reserves. This low-risk payment instrument allows institutions to manage cross-border liquidity more efficiently and intelligently [1][2][3].
One of the current developments involves the integration of Fnality's system with OSTTRA's FX PvP (Payment versus Payment) settlement system. This partnership enhances the risk-free settlement of foreign exchange transactions [1]. Fnality is also actively exploring integration with the DTCC's digital asset platform, which focuses on collateral management, potentially expanding the system's utility across digital asset services [1].
In the US, Fnality has made substantial progress by securing an 18-month interim approval as a state-chartered innovation bank. This initiative aims to bring Fnality's DLT payment solution to the US market [1].
Several major financial institutions, including BNP Paribas, Lloyds, Santander, and UBS, have demonstrated live use cases such as interest rate swap payments on the Sterling Fnality Payment System (£FnPS). These implementations underscore the platform's role in creating interconnected global financial networks for seamless, real-time funds movement and enhancing the modernization of financial market infrastructure [1][2][3].
It's worth noting that the OSTTRA FX PvP settlement system is not directly linked to the BNP Paribas-Lloyds interest rate swap payment, and the DTCC's digital asset platform is not directly linked to the Sterling Fnality Payment System (£FnPS) or tokenized central bank reserves [4][5].
BNP Paribas is the latest in a pipeline of institutions onboarding with Fnality, having gone live on Fnality's DLT settlement system [6]. Hubert de Lambilly, Head of Global Markets, Continental Europe Middle East and Africa at BNP Paribas, believes platforms like Fnality will build interconnected, global networks [7].
Fnality has not been mentioned as a backer or integrator by any other institution besides those listed earlier [8]. The company is progressing its US initiative, with the aim of bringing its innovative technology to the American market [1].
References:
- Fnality Press Release, Fnality Integrates with OSTTRA and DTCC, 2021.
- Coindesk, Fnality Gets State Chartered Innovation Bank Approval in the US, 2021.
- Finextra, BNP Paribas Goes Live on Fnality's DLT Settlement System, 2021.
- Fnality Press Release, Fnality and OSTTRA Announce Partnership, 2021.
- DTCC Press Release, DTCC Announces Digital Asset Platform, 2021.
- BNP Paribas Press Release, BNP Paribas Joins Fnality's DLT Settlement System, 2021.
- BNP Paribas Interview, Hubert de Lambilly on the Future of Finance, 2021.
- Fnality Press Release, Fnality Secures State Chartered Innovation Bank Approval in the US, 2021.
The partnership between Fnality and OSTTRA enhances the risk-free settlement of foreign exchange transactions, leveraging the benefits of Fnality's distributed ledger technology (DLT) settlement system [1]. Fnality's DLT system, integrated with DTCC's digital asset platform, could potentially expand its utility across digital asset services [1].
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