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Blockchain startup Baton Systems has secured over $12 million in a Series A funding round led by Trinity Ventures, with participation from Alsop Louie and Commerce Ventures.
Founded in 2016, Baton is a provider of blockchain-inspired, bank-to-bank payments solution that seamlessly integrates with financial institutions' existing collateral and cash systems. Its shared, permissioned ledger serves as a real-time clearing and settlement gateway that enables instant reconciliation down to the sub-account level.
In its press release, Baton said that its technology has already been deployed at three of the world's top ten global banks, as well as multiple exchanges and clearing houses. It was also used in a successful pilot with the Bank of England.
“Baton is already processing more than $12 billion each business day in payments between market participants and clearing house counterparties, enabling more efficient management of the foreign exchange settlements and margining process,” it said. “This increases transparency and reduces processing times from days to minutes, freeing up billions of dollars in tied-up capital.”
Baton said that what differentiates its solution from other blockchain solutions is that it allows clients to “move real assets sitting in real bank accounts securely and nearly instantaneously without the need for digital conversion.” This, it added, helps to drastically reduce risks and enhance transparency and security.
The company aims to use the amount raised to support the continued rapid global deployment of its distributed ledger-based technology.
"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."
