Baton Systems Secures $12 Million For Scaling Of Bank To Bank Blockchain Platform
Payment solutions are vital to the mainstream adoption of cryptocurrency, and there have been a variety of crypto payment systems developed over time. These different payment systems assist blockchain applications to be adopted easily in various industries.
Baton Systems, a blockchain development firm that has developed a blockchain-based bank to bank payment solution has raised $12 million in its latest funding round. Trinity Ventures led the Series A round of funding and the funds acquired will be used to scale the bank to bank blockchain payment system.
Use of Payment System
The blockchain-based company has created a system that is compatible with legacy systems and can be used hand in hand with them. According to the blockchain firm, more than $13 billion worth of payments have been processed through the system as the company seeks to implement solutions for its clearinghouse counterparties and various other market participants.
Interoperability with legacy systems means that companies and banks which make use of the payment system do not need to change anything about their existing business systems. Baton Systems said that their platform could be fully integrated with any collateral and cash systems belonging to financial institutions without disturbing the current business processes, ledgers or systems.
The blockchain-powered system creates transparency and efficiency in settlement of payments. It also provides its users with instant reports and reconciliation of the transactions to ensure that all participants are kept in the loop about the events around a deal. Arjun Jayaram, Baton Systems’ CEO, clarified that while the payment solution uses distributed digital ledgers, it does not involve the use of cryptocurrencies or digital assets.
Baton Systems and its Position in Financial Systems in the World
Baton Systems is a key player in the creation of bank to bank payment solutions in the blockchain industry, and the firm has been involved with many institutions in a bid to implement these systems. The firm was part of the creation of the Bank of England’s first blockchain-based real-time gross settlement system. This pilot program influenced the Bank of England’s decision to construct its RTFS system which uses blockchain technology.
Last year, the blockchain company participated in Barclays’ hackathon and won an award for the best solution for the support of ISDA’s Common Domain Model (CDM) industry standard, which is applied to derivatives. This support was extended to the firm’s blockchain platform, and this allows their clients to bring their existing derivatives and swaps to the blockchain platform.