Trinity Ventures leads round with participation from Alsop Louie and Commerce Ventures

Baton Systems has raised more than $12 million. The provider of high-speed, blockchain-inspired, bank-to-bank payments infrastructure, aims to increase processing times in the $2 trillion payments market.

“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.”

The company aims to expand deployment of its distributed ledger-based technology. That technology has operated in a pilot with the Bank of England. The firm also deployed the technology to work with three of the world’s top ten global banks, and exchanges and clearing houses around the world.

Baton Systems Current Operations

The firm currently processes over $12 billion each business day in payments between market participants and clearinghouse counterparties. The goal is to increase efficiency in the management of the foreign exchange settlements and margining process.

The firm claims its technology improves transparency and reduces processing times from days to minutes. The firm says that its technology is much different than blockchain solutions. Its technology the shift of assets from bank accounts to other accounts quickly without the need for digital conversion.

“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,” said Schwark Satyavolu, general partner at Trinity Ventures and a member of Baton’s board of directors.