Baton Systems, a blockchain-inspired bank-to-bank payments infrastructure, has bagged over $12m in its Series A.
Trinity Ventures led the investment, with contributions also coming from Alsop Louie and Commerce Ventures.
Capital from the round will be used to further global deployment of its ledger technology, which has been deployed within three of the world’s top 10 banks and several exchanges and clearing houses, the company claims. The platform has also had a successful pilot with the Bank of England.
The distributed ledger-based technology enables on-demand payments, eliminating the need for capital-intensive pre-funding of marking requirements. Users can move real assets in bank accounts more securely and without the need for digital conversion.
Baton integrates with financial institutions’ existing collateral and cash systems, leaving their existing business processes, systems, and ledgers intact. Furthermore, the company provides a customisable software workflow engine to coordinate across multiple systems and institutions.
The company processes over $12bn every business day in payments between market participants and clearing house counterparties.
Trinity Ventures general partner Schwark Satyavolu said, “Bank-to-bank settlement today is slow and manual, trapping billions of dollars that could instead be used to grow businesses. 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.
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