OSTTRA and Baton Expand FX Settlement Network with Tokenised Commercial Bank Funds and 24/7 Access

OSTTRA, Baton, and Partior have expanded their FX settlement network to include tokenized commercial bank funds and 24/7 access. The integration enables institutions to settle FX trades using tokenized deposits in USD, EUR, and SGD, further diversifying liquidity tools within the network. The FX PvP orchestration service, powered by Baton Systems' distributed ledger technology, allows for automated netting and atomic PvP settlement using fiat, tokenized commercial bank money, or central bank-like credit assets.

OSTTRA, Baton, and Partior have significantly expanded their FX settlement network by integrating tokenized commercial bank funds and 24/7 access. This enhancement enables financial institutions to settle foreign exchange (FX) trades using tokenized deposits in USD, EUR, and SGD, providing a more diverse range of liquidity tools within the network. The integration is a result of Partior connecting to OSTTRA's on-demand FX payment-versus-payment (PvP) settlement network, which is powered by Baton Systems' distributed ledger technology [2].

The new service offers participants the flexibility to settle trades using fiat currency, tokenized commercial bank money, or assets with the credit characteristics of central bank money. This flexibility helps reduce pre-funding requirements and align settlement flows with internal liquidity strategies. The network’s interoperable design allows participants to settle both legs of a transaction in fiat, tokenised money, or a mix of the two, depending on liquidity needs across time zones [2].

The integration supports growing real-world adoption as institutions move beyond experimentation to streamline post-trade FX processes. OSTTRA Co-CEO John Stewart noted that this development is a significant step forward in setting the stage for a more connected, resilient, and accessible financial system. Humphrey Valenbreder, CEO of Partior, added that the ability to settle FX trades with tokenised commercial bank money efficiently is crucial for optimizing liquidity, reducing risk, and unlocking new opportunities to manage capital across global markets [2].

The integration of tokenized funds supports the growing trend of real-world adoption of digital assets. The service continues to provide automated matching, netting, and programmable atomic PvP settlement through Baton’s distributed ledger technology, which has processed more than US$13 trillion in FX settlements to date [2].

References:
[1] https://www.stocktitan.net/news/BAC/bof-a-clients-embrace-new-10-million-limit-in-u-s-real-time-e3rmbet3hio3.html
[2] https://fintechnews.sg/112877/payments/osttra-baton-partior/
[3] https://kiffmeister.com/tag/crossborder/