Blockchain-Inspired Clearing and Settlement Startup Raises $12 Million

Baton’s blockchain-inspired technology enables its clients to move real assets sitting in real bank accounts securely and nearly instantaneously without the need for digital conversion. The service reduces risks and increases transparency and security. Baton was founded in 2015 as Ubixi.

Baton Systems has raised more than $12 million in a Series A investment round is led by Trinity Ventures in order to increase processing times and efficiencies within the $2 trillion global payments market.

The funding round, which also had the participation from Alsop Louie and Commerce Ventures, will support the rapid global deployment of Baton’s blockchain-inspired, bank-to-bank payments infrastructure.

The firm’s technology has been deployed at three of the world’s top ten global banks, as well as multiple exchanges and clearing houses, which has resulted in the processing of more than $12 billion each business day in payments between market participants and clearing house counterparties.

Baton’s infrastructure provides transparent and efficient management of the foreign exchange settlements and margining process by integrating with financial institutions’ current collateral and cash systems, leaving their existing business processes, systems, and ledgers in place. Its software workflow engine is then used to
coordinate among multiple systems and institutions in order to achieve settlement by moving real assets in real accounts, along with instant reconciliation and reporting for all parties.

Arjun Jayaram, CEO of Baton Systems, commented: “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. 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.”

Schwark Satyavolu, general partner at Trinity Ventures, commented: “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.”

Gilman Louie, partner of Alsop Louie, added: “We’ve been a firm believer in the potential of what Baton is doing for the payments industry since day one. Since those first conversations, Arjun and his team have rapidly moved from concept to reality with a top-tier set of initial clients, and advanced discussions taking place with the A-list of central banks and global financial institutions.