Industry Article

Baton Core-Liquidity: transforming liquidity management through distributed ledger technology

In PAY21 October, Alex Knight, Baton Systems’ Global Head of Sales, introduces Baton Core-Liquidity, a solution based around a set of wallets that share in an underlying cash account with a nostro bank, allowing for real time, frictionless movements of cash.



Watch Alex Knight discuss the Baton Core-Liquidity Solution:

“This isn’t blockchain, or stablecoin, or tokenisation,” Alex says. “Put simply, it’s addressing old money problems with the best in new, shared ledger technology.” 

He explains that Core-Liquidity allows asset ownership to be transferred in real time and on demand, 24/7, in a legally enforceable way. “In essence,” he explains, “it delivers programmable money onto existing rails.” 

“This is addressing old money problems with the best in new, shared ledger technology.”
– Alex Knight

He goes on to say that, for large financial institutions, internal fund transfers make up a huge proportion of total cash movements. “Within these organisations, each entity generally maintains its own nostro in each currency,” he says, “but transfers between entities are often time-consuming, hard to synchronise and expensive.” Since it is challenging to maintain and track liquidity, he continues, firms often find themselves crossing large spreads on interest payments and charges even though, overall, they are sufficiently funded to avoid this. 

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