Fnality’s digital wholesale payments system delivers the payment leg for DTCC’s new platform, enabling real-time, secure settlement in tokenized collateral markets

Fnality has announced it is collaborating with the Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, on the potential integration of the Fnality wholesale payments system (FnPS) as a payment rail within the Digital Launchpad, a new environment unveiled by DTCC to support the testing and advancement of emerging digital assets technologies on their path to production. This marks 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.

Fnality delivers a wholesale payment system that enables the use of an asset with the credit characteristics of central bank money, providing the trust and finality of settlement required for regulated institutions to scale activity in tokenized financial markets. By integrating Fnality’s system with DTCC Digital Launchpad asset transfers and payments can be executed atomically and in real-time within a secure and resilient environment. It also enables 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.

DTCC’s Great Collateral Experiment, which was hosted on DTCC Digital Launchpad, demonstrated how tokenized assets can be effectively mobilized as collateral, with FnPS enabling real-time funding and settlement in the test environment. 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 funds in the Fnality testing environment, onboarding the investor’s account onto DTCC’s ledger, and executing a PvP test transaction that settled instantly.

DTCC’s Great Collateral Experiment also brought together a diverse cross-section of financial market assets and participants, including Fnality’s partners, Adhara and Ownera. In this use case, Adhara’s DC Commander facilitated the integration with participant banks’ back-office systems and enabled them to see their positions across ledgers in real time, while Ownera provided the routing technology that orchestrates the seamless exchange of information and DvP between ledgers.

Michelle Neal, CEO at Fnality International said: “Our collaboration with DTCC goes back to 2023, when we jointly demonstrated a DLT-based model for atomic, real-time DvP settlement. 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 tokenized assets. This is a critical step towards realizing our vision for frictionless, 24/7 wholesale financial markets, where tokenized assets can move instantly, securely and with finality. As more institutions embrace tokenization, Fnality is committed to supporting a robust and interoperable ecosystem that bridges traditional finance and digital innovation, enabling smarter liquidity management and a new era of capital markets efficiency.”

Dan Doney, Chief Technology Officer Digital Assets at DTCC said: “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.”

Peter Munnings, COO at Adhara said: “DTCC’s Great Collateral Experiment once again demonstrated how DC Commander can provide out-of-the-box functionality to help banks manage tokenized cash liquidity and seamlessly implement new intraday flows.”

Ami Ben David, Founder and CEO of Ownera said: “It was an absolute pleasure collaborating with DTCC, Fnality and Adhara on The Great Collateral Experiment. Ownera is focused on interconnecting the tokenized market and this includes mobilizing collateral at a market-wide level. We believe that Ownera’s ability to transfer DTCC-held collateral from traditional systems to digital rails, and to orchestrate its movement between market participants and across diverse ledger technologies using DTCC’s AppChain and Digital Launchpad infrastructure, represents a transformative step forward for the financial industry.”

Source: Fnality