Major Banks, including Lloyds, Santander, and UBS, completed the World's First Live Blockchain Transactions

In a groundbreaking development, blockchain-based wholesale payments firm Fnality announced the successful completion of the world's first live transactions, digitally representing funds held at a central bank. Shareholders, including Lloyds Banking Group, Santander, and UBS, participated in these transactions, marking a historic milestone in integrating blockchain technology with traditional financial systems.

Fnality aims to bridge the gap between mainstream and digital finance by leveraging blockchain to reduce the time and cost of settling, managing collateral, and executing real-time wholesale payments for global financial market transactions.

"The creation of a new systemically important global payment system is a once-in-a-generation event," stated Hyder Jaffrey, Managing Director for Principal Investments and Strategic Ventures at UBS, emphasising the significance of this pioneering achievement.

The inaugural live payments were conducted in sterling, utilising an "Omnibus Account" at the Bank of England. By enabling an operator to pool participant funds, this account, which the central bank introduced in 2021, promotes innovation and competition in payments. Using central bank money-to-back transactions adds an extra layer of reassurance for institutions involved in these digital payment processes.

Fnality boasts a distinguished list of shareholders, including Goldman Sachs, Barclays, BNP Paribas, BNY Mellon, CIBC, Commerzbank, DTCC, Euroclear, ING, KBC, Mizuho, MUFG Bank, Nasdaq Ventures, Nomura, Sumitomo Mitsui, State Street, and WisdomTree. This global support underscores the significance of Fnality's vision for cross-border, round-the-clock financial transactions.

"As we step into 2024, our focus sharpens on scaling up operations within a managed and approved framework as set out by the Bank of England and steadily progressing towards unlocking new market use cases," commented Fnality UK CEO Angus Fletcher in a statement.

Fnality's ambitious plans include establishing a series of regulated, blockchain-based "institutional-grade" payment systems for other core currencies, such as the dollar and euro. Their respective central banks will be in charge of these systems, which will advance the world's financial infrastructure.

Fnality also aims to expand its network by onboarding more participant banks and introducing related services, including digital securities settlement, intraday repos, and intraday FX swaps. Successful live transactions represent a significant step forward in realising the potential of blockchain technology to reshape and enhance the efficiency of traditional financial processes on a global scale.