Shaping the direction of Baton Systems

Arjun Jayaram is Baton’s founder and CEO, responsible for business development and for driving the company’s strategy. In PAY21, he gives a brief update on the company and its products and looks forward into 2021 and beyond.

Baton’s Products:

– Collateral Management

Arjun outlines how Baton’s cleared collateral product connects to both CCPs and custody banks, allowing FCMs to view both their exposures and obligations to a CCP as well as their assets in real time across the custody banks. Cash and collateral can then be moved from an FCM to a CCP.

“A process which used to take 12-16 hours can be executed in under three minutes” ,Arjun explains

Currently between USD4bn -8bn per day of cash and securities is moved via Baton’s platform for this purpose. Arjun is confident that, by the end of 2021, 12 of the major CCPs will be live on Baton and that around 40% of the collateral movements between clearing members and the CCPs will be facilitated by the Baton platform.

The platform, he explains, works on native assets by connecting to the ledgers of financial institutions via the clearing and settlement gateway. The key advantage from this is that Baton’s system does not require conversion to any digital token or cryptocurrency.