Baton Systems Secures $12M For Blockchain Bank-To-Bank Payment Infrastructurebr>
Baton Systems, a California-based provider of bank-to-bank payments infrastructure modeled on blockchain technology, has raised more than $12 million in a Series A investment round led by Trinity Ventures. The round also saw participation from Alsop Louie and Commerce Ventures.
Founded in 2016, Baton enables on-demand payments through its distributed ledger-based platform to eliminate the need for capital-intensive pre-funding of margin requirements and deliver a more operationally efficient infrastructure for the entire derivatives ecosystem. Unlike blockchain solutions, Baton’s technology enables its clients to move real assets sitting in real bank accounts securely and nearly instantaneously without the need for digital conversion.
The latest funding will be used to accelerate global deployment of Baton’s platform, which has already been deployed at three of the world’s top ten global banks and processing $12 billion daily.
“This investment provides us with the strategic support and firepower to scale our bank-to-bank payment solution for the world’s leading financial institutions even faster and more effectively,” said Arjun Jayaram, CEO of Baton Systems. “Speed to market is critical in an industry that is crying out for modernization while at the same time facing a daunting global regulatory environment.”
According to Baton, the company’s platform integrates with financial institutions’ current collateral and cash systems, leaving their existing business processes, systems, and ledgers in place. Baton then provides a customizable software workflow engine to coordinate among multiple systems and institutions, achieving record-fast, transparent, and efficient settlement by moving real assets in real accounts, along with instant reconciliation and reporting for all parties.
“Bank-to-bank settlement today is slow and manual, trapping billions of dollars that could instead be used to grow businesses,” said Schwark Satyavolu, general partner at Trinity Ventures and a member of Baton’s board of directors. “Baton is completely transforming the global bank payments infrastructure, leveraging the best of blockchain’s potential while mitigating its key concerns. Arjun and his team are the ideal visionaries and practitioners capable of turning this tremendous need into reality — and are already doing so for their many top-tier banking clients.”