According to a Ledger Insights report published Sept. 2, the new funding will be used to scale Baton Systems’ blockchain-powered bank-to-bank payment solution.
California-based blockchain development firm Baton Systems has closed a $12 million Series A funding round led by Trinity Ventures.
Interoperability with legacy systems
Baton Systems has reported that it already processes over $13 billion in payments implementing its solution for market participants and clearinghouse counterparties.
The firm’s blockchain platform is designed to be interoperable with legacy systems and doesn’t require clients to overhaul their existing business systems. As Baton Systems outlined in a statement:
“The Baton platform integrates with financial institutions’ current collateral and cash systems, leaving their existing business processes, systems, and ledgers in place.”
The blockchain software workflow coordinates between various systems and institutions to achieve transparent and efficient settlement of assets, together with instant reconciliation and reporting for all parties involved, the company has noted.
While using distributed ledger technology, the payments-focused solution does not involve cryptocurrencies or digital assets, Baton Systems’ CEO Arjun Jayaram emphasized.
According to the report, Baton Systems contributed to the Bank of England’s blockchain pilot for real-time gross settlement, which spurred the institution’s later decision to rebuild its RTFS system using the technology.
In a Barclays-hosted hackathon last year, Baton Systems won a prize for the best solution supporting the ISDA’s Common Domain Model (CDM) industry standard for derivatives. The firm later announced support for the CDM standard on its blockchain platform, allowing clients to efficiently connect their existing swaps and derivatives systems to the Baton platform.
Earlier this summer, the Italian Banking Association announced that Italy’s banks will integrate distributed ledger technology into internal settlement processes in a bid to improve transparency in interbank transactions and counterparty communication.
US FDA to Hold Meeting on Blockchain and AI in Food Traceability
The United States Food and Drug Administration (FDA) is holding a public meeting to discuss a new initative called “A New Era of Smarter Food Safety.”
In an announcement on Sept. 17, the FDA said the consultation with international stakeholders – designed to debate public health challenges and the implementation of the Food Safety Modernization Act – will take place on Oct. 21.
Specifically, the FDA intends to establish “a more digital, traceable, and safer system” to protect consumers from contaminated food.
The initiative proposes to deploy technologies such as blockchain, artificial intelligence, Internet of Things and sensors to develop a digital system so users can trace the source of food products and assess associated risks.
The new approach was initially announced in late April by Acting FDA Commissioner Dr. Ned Sharpless and Deputy Commissioner for Food Policy and Response Frank Yiannas. According to the announcement, emerging technologies could greatly reduce the time needed to trace the origin of contaminated food and respond to public health risks.
Industry players focusing on blockchain
Blockchain technology has the potential to transform and improve the food industry as many retailers and producers are beginning to apply it. Just recently, Nestlé said it had to adopt a “startup mindset” in order to push ahead with its challenging blockchain venture.
This summer, tech giant Oracle and the World Bee Project revealed the development of a blockchain-based sustainability assurance system for the honey supply chain. In addition to blockchain technology, BeeMark also plans to make use of data science to monitor environmental factors related to bees’ surroundings.
Recent research conducted by University College London suggested that the grocery sector is currently responsible for nearly half of all distributed ledger technology-based supply chain projects.