Headquartered in Fremont, California, Baton Systems has been a bank-to-bank payment infrastructure provider modelled on blockchain technology for three years. The company announced today that it has received $12 million in Series A funding from Trinity Ventures, and Alsop Louie and Commerce Ventures have also participated in the round.
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Arjun Jayaram, founder and CEO of the company, said the funds will be used to support Baton's distributed ledger-based system, which enables on-demand payments without the need for pre-funding margin requirements (stocks, bonds and other securities investors) The proportion that must be paid in cash.)
“This round of financing provides us with strategic support and firepower, enabling us to expand bank-to-bank payment solutions for the world's leading financial institutions faster and more efficiently. In an urgent need for modernization, it is also daunting. In a globally regulated environment, market speed is critical."
Baton's hybrid cloud platform acts as a gateway between bank books for real-time reconciliation, the accounting process that confirms whether the account balance is consistent with the amount spent. Customers can clear and settle asset classes and currencies in real time through shared and licensed distributed ledgers to understand the flow of funds between banks and exchanges without disrupting existing ledger systems.
Baton claims that its systems are redundant in terms of geographic area, and the underlying architecture—automatic scheduling for handling bursty traffic—is highly robust and customizable. To this end, APIs and feature sets allow customers to create custom workflows for billing while leveraging Baton's platform for trading.
It is worth noting that Baton is not the only company that targets the traditional ledger system. The bank chain inspired by the blockchain Secco is built around a database distributed in the customer's mobile phone, while the Sila project's solution is connected to the existing payment system via the smart contract function on the Ethereum network. In addition, a report published earlier this year by the World Economic Forum found that dozens of different central banks are exploring, researching or actively experimenting with internal blockchain technology.
However, Baton has made substantial progress in the $2 trillion payment market, with the Bank of England participating in the pilot , with a customer base consisting of three of the world's top ten banks. The company said its network currently handles more than $12 billion in payments between market participants and clearing house counterparties every working day.
Alsop Louie partner Gilman Louie said:
“From the first day, we firmly believe that Baton has all the potential for the payment industry. Since the first conversation, Arjun and his team and a group of top initial customers have quickly turned the project from concept to reality, and with In-depth discussions were held between leading central banks and global financial institutions."
Schwark Satyavolu, a general partner of Trinity Ventures and a member of Baton's board of directors, added:
“Today's banks are slow to settle banks and are man-made, trapping billions of dollars, which could have been used to grow their business. Baton is revolutionizing global banking payment infrastructure to take advantage of the potential of the blockchain At the same time, alleviating its main concerns. Arjun and his team are ideal visionaries and practitioners who have the ability to turn this huge demand into reality – they are already doing this for many top banking customers .”
Founded in 2016, Baton Systems was originally named Ubixi and was founded by venture capital to work with a wide range of market players – including large global banks, custodian banks, exchanges and the Federal Reserve – to meet today's cost savings, regulatory requirements and Better capital management needs. Arjun Jayaram is the company's CEO and founder. Arjun is the co-founder and chief technology officer of social media advertising company Compass Labs, and he later sold the company to Yahoo. He also managed anti-spam work before the Twitter IPO, and he is also a member of the Fed Secure payments task force.
Founded in 1986, Trinity Ventures is a startup or early-stage venture capital firm focused on the cloud, mobile devices, electronic media, applications, social commerce and entertainment.
Founded in November 2006, Alsop Louie Partners is an early venture capital firm focused on information technology.
Founded in 2012, Commerce Ventures is a venture capital firm that invests primarily in retail, mobile, payments and digital marketing.