Giesecke+Devrient (G+D), a global security technology group headquartered in Munich, has invested through its Corporate Venture Capital arm, G+D Ventures, in UK-based FNA (Financial Network Analytics), a deep technology firm specialising in advanced network analytics and simulations.
• G+D’s recent investment in FNA is part of a strategic funding round and expands on an existing partnership for the development and rollout of a CBDC simulation solution
• The partnership focuses on building the future of money, by developing software enabling the world’s central banks to safely test and model the impact of introducing a central bank digital currency (CBDC) on the financial and economic system
• Existing investors IQ Capital and GettyLab have also further invested in this new funding round
• Assaf Shamia, investment partner at G+D Ventures, will join the Company’s Board of Directors as an Observer.
The growing focus on CBDCs is undisputed, with 67 different CBDCs either under research, being piloted or in development across the world today. However, despite CBDCs featuring broadly in many central bank strategies, the implications for financial and economic systems are still rarely understood. Central Banks, many having experimented with distributed ledger technology (DLT), will now be able to deploy simulation technology to fully test and understand the economic, liquidity and financial stability implications of introducing a CBDC.
FNA and its team have been building simulators for payment systems and networks since 2014. Its unique technology has enabled Financial Market Infrastructures (FMIs), Financial Institutions, Central Banks and National Security organisations to rapidly map and monitor complex financial networks, optimise liquidity and simulate operational and financial risks. In addition, FNA is an established thought leader in Supervisory Technology (Suptech) and has trained over 3,000 professionals from more than 50 central banks and financial authorities.
Giesecke+Devrient (G+D) is an international Group providing security technology in payment, connectivity, identities, and digital infrastructures. As a longstanding partner of central banks G+D offers cash and cash solutions, electronic and digital payment and has also developed its own offering for central bank digital currencies. The investment was carried out by G+D’s venture capital arm G+D Ventures.
Together, FNA and G+D provide unparalleled subject matter expertise and market access across the modelling, simulation and development of CBDCs.
G+D’s strategic investment is designed to allow FNA to accelerate innovation and build additional resources as well as developing its CBDC simulation software further. The investment will also support ongoing global growth and reinforce recent major customer acquisitions. As part of the transaction, G+D will also join the company's Board as observers.
FNA’s Founder and CEO, Dr Kimmo Soramäki, added: “Our mission is to make the financial system safer and more efficient, and for more than a century, G+D has had the same objective, making them a perfect partner. As technology continues to change the world, how we interact with money is next in line for disruption.
The unique combination and capabilities of FNA and G+D will allow us to provide the necessary software financial regulators and institutions need to prepare for the next evolution of the global financial system: the launch of the central bank digital currency.”
Assaf Shamia, investment partner at G+D Ventures, said: “We are impressed with FNA’s technological approach and domain expertise in the emerging Suptech sector. As market and technology leader in payments, our investment in FNA allows us to deepen our existing partnership and jointly address the trust and transparency needs of commercial banks and central banks alike.
Together with FNA we want to provide financial institutions with insights into the introduction and adoption of digital currencies – allowing for an informed and data-driven implementation of a CBDC.”