Baton Systems powers first interbank riskless settlement outside CLS

The solution is built on Baton’s proprietary distributed ledger technology (DLT) and governed by the Baton Rulebook. The financial institutions are now using the platform to collaboratively settle FX trades bilaterally on demand using real currencies in real accounts, in less than three minutes, on a PvP basis with legal settlement finality, as the press release says.

Market participants can now reduce their settlement exposure and associated risks outside of the CLS framework. All currencies, including emerging market currencies, which are ineligible for PvP settlement in CLS, can now be securely settled using distributed ledger technology that provides flexibility and transparency.