- With $63.2 million in fresh funding from 14 banks, Fnality is building tokenized versions of five major fiat currencies.
- The digitized fiat would be fully collateralized by cash held at central banks and is meant to solve the “cash on ledger” problem faced by other financial blockchain projects.
- The consortium says it is open to working with JPMorgan, whose JPM Coin project has similar aims.
- Fnality’s tech partner, Clearmatics, is building these systems on a private version of ethereum.
Fnality International is building the missing link in the banking blockchain.
Formerly known as Utility Settlement Coin (USC), the newly rechristened U.K.-based project is developing blockchain versions of five major fiat currencies: the U.S. dollar, the Canadian dollar, the British pound, the Japanese yen and the euro. Led by former Deutsche Bank executive Rhomaios Ram, the consortium boasts an ample budget, having just raised $63.2 million from 14 shareholder banks.
In a recent interview with CoinDesk, Ram and other bank and tech executives involved in Fnality shed some light on the previously secretive project’s plans – starting with the role these tokens, still referred to as USC, would play in the enterprise blockchain ecosystem and the wider financial world.
What’s the point of representing fiat currency, the very thing bitcoin sought to usurp, on a blockchain? According to Ram, it’s a means to an end, not an end in itself.
He pointed to the many private blockchain projects trying to tokenize wholesale markets, either at the proof of concept stage or close to production. All are lacking one thing: fiat currency on the ledger.