Baton Systems

About Baton Systems

Baton Systems, founded in 2016 by Arjun Jayaram, provides post-trade processing solutions for capital markets, leveraging proprietary distributed ledger technology (DLT). The firm is headquartered in Fremont, California, with offices in London, New York, and Chennai, India. Jayaram, a technologist and serial entrepreneur, established the company (initially named Ubixi) to address systemic inefficiencies in global payments and settlement systems he identified during his tenure at companies like Dwolla and Twitter, and after the successful sale of his first startup, Compass Labs, to Yahoo.

The company targets major financial institutions, including global banks, custodian banks, exchanges, and central clearing counterparties (CCPs). Its business model revolves around providing a platform that integrates with existing financial infrastructure to streamline post-trade workflows, reducing settlement risk and optimizing liquidity. Baton’s technology acts as a shared, permissioned ledger that provides real-time visibility and orchestration of asset movements without requiring the tokenization of assets or a complete overhaul of clients' legacy systems. This approach facilitates faster settlement times, with some processes completed in under three minutes, and can reduce settlement costs by 25%.

Baton’s core product suite is built on its DLT platform, offering solutions for foreign exchange (Core-FX), collateral management (Core-Collateral), payments (Core-Payments), and intraday liquidity management (Core-Liquidity). These products enable functionalities like on-demand payment-versus-payment (PvP) settlement, which mitigates counterparty default risk, and automated collateral management across multiple CCPs. The platform has been adopted by some of the world's largest banks, including HSBC, J.P. Morgan, and Citi, processing billions of dollars in transactions daily. Significant milestones include facilitating the first interbank riskless settlement outside of CLS and expanding its network to include major CCPs like LCH, CME, and Eurex.