Adhara and Ownera, two prominent tech firms, have entered into a partnership focused on providing financial institutions with enhanced access to digital cash and collateral, regardless of the blockchain platform. The goal of this collaboration is to create a more seamless and interoperable environment where institutions can leverage tokenized assets across various blockchain ecosystems, a growing demand in the digital financial sector.
Adhara, well-known for its involvement with the Fnality tokenized payment solution backed by 20 global institutions, brings its experience and technological prowess to the table. While Adhara has established its reputation through its work on Fnality, its scope extends beyond that, providing a range of independent solutions for tokenized deposits, central bank digital currencies (CBDC), and liquidity management. One of its key initiatives is a contract with the Bank of Spain for developing a wholesale CBDC solution aimed at supporting tokenized deposits.
Moreover, Adhara is actively working on a blockchain interoperability solution called Harmonia. This project, developed in collaboration with R3, the creator of the Corda blockchain, is part of Hyperledger Lab. Since Adhara primarily uses Ethereum-based technology, Harmonia is designed to facilitate interoperability between Ethereum and other blockchains, particularly Corda. This initiative highlights the importance of enabling different blockchain technologies to communicate and interact seamlessly in an increasingly tokenized financial ecosystem.
Ownera’s Unique Approach with FinP2P
While Adhara is focused on enabling blockchain interoperability, Ownera takes a different approach with its FinP2P platform. FinP2P serves as a routing network rather than a blockchain, aiming to simplify how institutions can transact across various blockchains without needing direct integration with each one. Institutions can use FinP2P to purchase assets on one blockchain and settle them with funds on another. The beauty of this solution lies in its simplicity; financial institutions only need to integrate with FinP2P via a single API, avoiding the complexity of multiple blockchain integrations.
FinP2P also provides flexibility by supporting orchestrated settlement, a method that uses cryptographic proofs commonly found in blockchain interoperability solutions. This dual approach—offering both routing capabilities and blockchain-level security through cryptographic proofs—gives institutions multiple options for settling transactions. Adhara plans to leverage both aspects of FinP2P, integrating its own digital cash and liquidity management expertise to enhance the overall offering.
Adhara’s co-founder, Ed Budd, explained that the combination of Adhara’s expertise in digital cash and liquidity management with Ownera’s routing technology sets a new standard for financial institutions. This partnership will enable institutions to quickly integrate their internal systems with Adhara’s Digital Cash Commander (DC Commander) and seamlessly connect with multiple networks, including those enabled by Ownera.
Expanding Connectivity Across Blockchain Networks
One of the standout features of FinP2P is its ability to support transactions across both institutional networks and public blockchains. Ownera has established partnerships with major players such as JP Morgan, R3, and the Canton Network, which facilitate this broad connectivity. Additionally, FinP2P collaborates with FIX, the leading front-office messaging standard in financial markets, enhancing its ability to integrate with established financial systems.
In 2022, FinP2P played a key role in a demonstration of a repo transaction involving multiple distributed ledger technology (DLT) networks. This demo included JP Morgan’s Onyx platform and the HQLAᵡ collateral network, both of which are at the forefront of blockchain-based financial solutions. While HQLAᵡ is preparing to launch its own repo solution in collaboration with Fnality, it is expected to use the Fnality Atomic Settlement Protocol (ASP), which adheres to the Enterprise Ethereum Alliance (EEA) standards. As such, it is likely that HQLAᵡ’s repo solution will operate independently of FinP2P. However, Adhara’s solutions will still play a critical role in this alliance, separate from Fnality’s initiatives.
Ownera’s Financial Position and Future Outlook
Ownera, despite reporting a financial loss of £5.2 million ($6.8 million) for the 2023 financial year, remains in a stable financial position. As a tech startup, such losses are typical, especially when the company is still in its growth phase. In late 2022, Ownera successfully raised $20 million in funding, with contributions from notable financial institutions, including JP Morgan. This funding round has helped ensure that the company remains well-positioned to continue its work in enhancing blockchain interoperability and expanding its FinP2P platform.
In summary, the partnership between Adhara and Ownera marks a significant step toward addressing the challenges of interoperability in the digital financial landscape. By combining Adhara’s blockchain-based expertise with Ownera’s innovative FinP2P routing network, the two firms are setting the stage for a more integrated and efficient financial ecosystem. This collaboration not only enhances how financial institutions interact with digital cash and tokenized assets but also opens up new possibilities for seamless, cost-effective transactions across multiple blockchain networks. As the demand for tokenization and blockchain solutions continues to grow, partnerships like this one will play a crucial role in shaping the future of the financial industry.