Fnality International has been founded to create a network of decentralised Financial Market Infrastructures (dFMIs) to deliver the means of payment-on-chain in tomorrow’s wholesale banking markets. Within distributed Financial Market Infrastructure (dFMI), Fnality Global Payments (FnGP) has three core components; foundations, interoperability protocol, and business platforms. The foundations are the currencies. An interoperability protocol enables those foundations to connect to many different business platforms. Fnality will build the foundations and the interoperability protocol. Others will build the business platforms.
The Distributed Ledger Technology (DLT) is such that it enables the FnGP to:
-Operate a true peer-to-peer market
-Allows for immediate settlement
-Interoperate across business platforms and jurisdictions.
Benefits included are: Reduced counter-party and credit risk, Reduced operational risk, Efficient liquidity management, Ability to move resources from risk mitigation to business growth.
The fifth benefit not outlined above is the reduction in systemic risk; a key focus for central banks globally. Fnality has been architected along the lines of the specific PFMI requirements; operational resilience and capability, the functionality and transparency for financial institutions to manage their risk – all pointing towards enhanced financial stability and market efficiency.