- DLT-based Sterling Fnality Payment System (£FnPS) sees first live transactions utilising a digital representation of funds at central bank. Initial participants are Lloyds Banking Group, Banco Santander, and UBS.
The Committee on Payments and Market Infrastructures (CPMI) defines interoperability as follows:
“The technical or legal compatibility that enables a system or mechanism to be used in conjunction with other systems or mechanisms.”
When the Distributed Ledger Technology (DLT) community talks about interoperability, they mean that two or more systems can work seamlessly with each other. What they are talking about is enabling cross-chain atomic swaps – swaps in which either both legs happen or neither of them do. Deriving from the Greek ‘atomos’, the word roughly translates to ‘indivisible’. It is indivisibility which ensures both legs of DLT-enabled financial transactions can be actioned,...
- Latest funding round follows Series A of £55m in June 2019
- Lead investors include Goldman Sachs and BNP Paribas
UK FinTechs Fnality, Nivaura and Adhara collaborate with NatWest and Santander to execute first cross-chain pilot debt transaction on public Ethereum and Fnality Payment System
Traditionally, the functions of financial market infrastructure (which includes payment systems) have been centrally administered and operated by a single entity. There is a growing movement within the wholesale financial market towards decentralisation in order to reduce reliance on centralised intermediaries and “unlock billions in capital and liquidity”. Decentralisation is at the core of our design principles at Fnality. Both the technology underpinning the Fnality Payment System (‘FnPS’) and our organisational design are based on the concept of decentralisation. There will be no ‘single point of failure’ should a server go down or ‘single point of attack’ from malicious actors...
Bank of England publishes an omnibus accounts policy to enable innovative payment systems