The two are collaborating on the possible integration of the Fnality wholesale payments system within DTCC’s Digital Launchpad.
Post-trade infrastructure provider the Depository Trust & Clearing Corp. (DTCC) and a provider of regulated DLT-based wholesale payment systems Fnality are collaborating “on the potential integration of the Fnality wholesale payments system (FnPS) as a payment rail” within DTCC’s recently introduced Digital Launchpad, officials say.
The Digital Launchpad supports “the testing and advancement of emerging digital assets technologies on their path to production,” according to the announcement. “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.”
The collaboration between Fnality and the DTCC “goes back to 2023, when we jointly demonstrated a DLT-based model for atomic, real-time DvP settlement,” says Michelle Neal, CEO at Fnality International, in a statement. “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.”
The Fnality wholesale payment system “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,” officials say. Integrating Fnality’s system with DTCC Digital Launchpad “also enables users to consolidate liquidity into a single, unified pool.”
In April, Fnality participated in DTCC’s Great Collateral Experiment, which included Fnality’s partners, Adhara and Ownera. Such efforts “demonstrated the power of unified rails for cash and securities transactions,” says Dan Doney, chief technology officer, digital assets at DTCC. The experiment “demonstrated how tokenized assets can be effectively mobilized 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.”
