The new integration between DLT-based systems expands options for settling FX transactions.
Partior, a provider of DLT-based wholesale settlement for tokenized instruments, has a new link to the on-demand FX payment-versus-payment (PvP) settlement service from OSTTRA and Baton Systems, officials say.
The new integration between Baton’s and Partior’s DLT-based systems “expands participants’ options for settling FX transactions with PvP protection to include using tokenized commercial bank facilities. This expanded choice will enable financial institutions to further optimize liquidity management and improve capital efficiency as the adoption of tokenized funds continues to scale,” officials say.
Partior says its “platform streamlines the settlement process, eliminating disunified messaging, intermediaries and the need for extensive reconciliation procedures that often lead to market inconsistencies.”
The collaboration among OSSTRA, Baton, and Partior “extends the network’s capabilities, delivering access to … major institutional banks offering settlement in a growing range of currencies, including USD, EUR, and SGD tokenized commercial bank money,” officials say. The collaboration also allows institutions to execute and manage post-trade FX processes.
The collaboration will also help participants via “automated matching, netting and settlement orchestration which delivers programmable atomic PvP and can now elect to settle FX transactions using either fiat or tokenized commercial bank money or an asset with the credit characteristics of central bank money,” officials say. The expanded network “can orchestrate settlement combinations, for example, where one currency leg involves traditional fiat and the other leg tokenized money. This flexibility allows network participants to align tokenized settlements with their institution’s liquidity demands across global markets, while minimizing pre-funding requirements when dealing with currencies in different time zones.”
Need a Reprint?