London, 28.07.2025 – BNP Paribas has become the newest participant in the Sterling Fnality Payment System (£FnPS), marking an expansion of the £FnPS participant network. This milestone was immediately followed by the successful completion of an on-chain interest rate swap payment between BNP Paribas and Lloyds on the £FnPS.

Fnality delivers a central bank-regulated DLT-based wholesale payment system, enabling the use of an asset with the credit characteristics of central bank money, providing the trust and finality required for regulated institutions to scale activity in tokenized financial markets.

The interest rate swap payment on the £FnPS demonstrates how DLT can support real-time, risk-free settlement of complex financial instruments using digital representations of central bank money. Beyond operational efficiency, this capability points to a future where cash, collateral and other assets are enabled to move seamlessly across interoperable platforms, thereby improving liquidity management, reducing risk and laying the groundwork for a more integrated and digitally native capital markets infrastructure.

BNP Paribas’ participation underscores the growing sophistication of the £FnPS, as well as the trust placed in it by top tier banks in a regulated financial landscape, demonstrating its capability for real-time, secure settlement using a digital representation of funds held at the central bank.

Michelle Neal, CEO at Fnality said: “BNP Paribas’ participation in this successful interest rate swap payment within the £FnPS reflects how our DLT-based infrastructure is delivering tangible benefits in wholesale finance. These milestones are not just operational achievements; they represent progress toward a global financial system where funds move seamlessly, securely and in real time. Fnality’s collaboration with BNP Paribas is another meaningful step toward realizing a more connected and efficient future for capital markets.”

Hubert de Lambilly, Head of Global Markets Continental Europe, Middle East, and Africa at BNP Paribas said: “We are pleased to collaborate with Fnality and complete our first Interest Rate Swap payment on the Sterling Fnality Payment System. “This transaction underscores our dedication to advancing the use of DLT to strengthen and modernize financial market infrastructure. With the rapid shift toward digital systems, we believe platforms such as Fnality will be instrumental in building interconnected, global networks that support real-time settlement and more intelligent, cross-border liquidity solutions.”

Rob Hale, Head of Financial Markets at Lloyds said: “Our participation in initiatives such as these reflects our strategic vision to help build more resilient, efficient, and globally connected financial markets. Digital assets have the power to transform core financial services, and we are proud to work with Fnality, bringing together industry-leading expertise to integrate tokenisation and distributed ledger technology into the heart of market infrastructure.”

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Media Contact

The PHA Group – fnality@thephagroup.com

 

About Fnality

Fnality is developing a series of regulated DLT-based wholesale payment systems. Each system, known as a Fnality Payment System (FnPS), is supervised by its respective central bank.

Within a FnPS, participants utilize a digital representation of funds held at the central bank for settling instant wholesale payments. The launch of FnPSs in key jurisdictions will enable many benefits, such as real-time cross-currency payments and the secure atomic settlement of any delivery versus payment transactions around the clock. The credit quality of the central bank

funds underpinning Fnality Payment Systems provides the missing ingredient for novel digital asset markets: institutional-grade digital cash.

In December 2023, the Sterling FnPS, previously recognized by HM Treasury as a systemically important payment system, commenced controlled live payments. Joining a handful of other regulated payment systems in the UK, it became the world’s first regulated DLT-based wholesale payment system, settling with a digital representation of funds held at the central bank. From December 2024, the £FnPS has been granted settlement finality designation.

Fnality’s shareholders comprise: Banco Santander, BNY Mellon, Barclays, BNP Paribas, CIBC, Commerzbank, DTCC, Euroclear, Goldman Sachs, ING, KBC Group, Lloyds Banking Group, Mizuho Financial Group, MUFG Bank, Nasdaq Ventures, Nomura, Sumitomo Mitsui Banking Corporation, State Street Corporation, UBS and WisdomTree.

For more information, please visit fnality.com

 

About BNP Paribas

Leader in banking and financial services in Europe, BNP Paribas operates in 64 countries and has nearly 178,000 employees, including more than 144,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients.

Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Türkiye, and Eastern Europe.

As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group’s performance and stability.

 

About Lloyds Banking Group

Lloyds Banking Group is the largest UK retail and commercial financial services provider with around 27 million customers and a presence in nearly every community. Our main business activities include retail and commercial banking, general insurance and long-term savings, provided through well recognised brands including Lloyds, Halifax, Bank of Scotland and Scottish Widows.

Our purpose is Helping Britain Prosper. We have served Britain through our products and services for more than 320 years, across every community, and millions of households. Our success is interwoven with the UK’s prosperity, and we aim to help Britain prosper by operating as a responsible, sustainable and inclusive Group.

About the author

Fnality Press Team