California-based blockchain development firm Baton Systems has closed a $12 million Series A funding round led by Trinity Ventures.
According to a Ledger Insights report published Sept. 2, the new funding will be used to scale Baton Systems’ blockchain-powered bank-to-bank payment solution.
Interoperability with legacy systems
Baton Systems has reported that it already processes over $13 billion in payments implementing its solution for market participants and clearinghouse counterparties.
The firm’s blockchain platform is designed to be interoperable with legacy systems and doesn’t require clients to overhaul their existing business systems. As Baton Systems outlined in a statement:
“The Baton platform integrates with financial institutions’ current collateral and cash systems, leaving their existing business processes, systems, and ledgers in place.”
The blockchain software workflow coordinates between various systems and institutions to achieve transparent and efficient settlement of assets, together with instant reconciliation and reporting for all parties involved, the company has noted.
While using distributed ledger technology, the payments-focused solution does not involve cryptocurrencies or digital assets, Baton Systems’ CEO Arjun Jayaram emphasized.
According to the report, Baton Systems contributed to the Bank of England’s blockchain pilot for real-time gross settlement, which spurred the institution’s later decision to rebuild its RTFS system using the technology.
In a Barclays-hosted hackathon last year, Baton Systems won a prize for the best solution supporting the ISDA’s Common Domain Model (CDM) industry standard for derivatives. The firm later announced support for the CDM standard on its blockchain platform, allowing clients to efficiently connect their existing swaps and derivatives systems to the Baton platform.
Earlier this summer, the Italian Banking Association announced that Italy’s banks will integrate distributed ledger technology into internal settlement processes in a bid to improve transparency in interbank transactions and counterparty communication.
Bitcoin wallet and blockchain explorer provider Blockchain announced a partnership with the largest bitcoin processor, BitPay.
According to a blog post published today, Blockchain will integrate BitPay’s payment architecture into its wallet service. This partnership will allow Blockchain wallet users to pay merchants online or on mobile.
BitPay processes approximately $1 billion in bitcoin alone every year for businesses and individual clients and over $2.8 billion in other cryptos for institutional clients since 2011. The firm has built an ecosystem of merchants that accept their payments – including Amazon, Delta, and Hotels.com – because, as a payment processor, it offers the option to settle in fiat currencies and provides invoices.
Likewise, Blockchain is often regarded as one of the world’s largest wallet providers with approximately 38 million users, of which more than half are located outside the United States. Further, the firm’s wallet users account for roughly a quarter of all on-chain bitcoin transactions.
“We’re excited to see this new addition connect our Wallet users to the world of merchants that accept Bitcoin (and soon other cryptos) as a payment method — one of the key ways to interact with and grow the digital asset ecosystem,” Blockchain writes in a statement.
Blockchain’s wallet service is non-custodial and offers an optional know-your-customer (KYC) verification for users who want in-wallet trading capabilities. Whereas, BitPay requires its users to undergo KYC requirements.
In July, Blockchain unveiled its crypto exchange platform the PIT, with optionality to connect the firms wallets for nearly instant transfers.