I am thrilled to share that Baton Systems and OSTTRA have partnered to offer FX PvP to the industry. This partnership is set to change the industry significantly, and I'm excited to explain why.
As we all know, payments are slow, expensive, and risky. However, the reasons for this are only sometimes clear, and many myths surround it. It's a complex set of issues that involve structural, legal, and technical factors. These issues become particularly evident in wholesale payments.
One of the most important structural issues to acknowledge is that most settlements today happen in centralized venues that restrict direct membership to only the largest banks. This means that tier 2 institutions or non-bank entities, such as funds, asset managers, and large global corporates are excluded today. This implies they have to find a sponsor member to get access to these venues, adding more hops to the settlement. Each hop adds costs, delays, and risks.
At Baton Systems, we addressed this issue with Core-Fx, settling over eight trillion dollars of value across many currencies on a peer-to-peer PvP basis with finality and no risk. However, bootstrapping a network of banks in the current environment is a challenge.
OSTTRA has decades of experience providing infrastructure in financial markets; their product suites span a large part of the post-trade lifecycle for currencies and securities.
The value systems of both companies matched perfectly, and our teams share the same passion for customer success, products, technology, operations, and risk. Now, thousands of financial institutions can use PvP settlements without installing new software or taking on many new risks and can get the workflow live in weeks.
This partnership and offering to the market will significantly change the industry, and we couldn't be more excited about it. Learn more about this game-changing partnership here: https://lnkd.in/gQTkHPNc
#fxmarket #payments #dlt #payments
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