Baton News: Core-FX for PvP Settlement

Following the announcement of our recent partnership, Baton’s award winning, on-demand FX payment vs payment (PvP) solution, Core-FX, is now being operated by OSTTRA.

The new OSTTRA operated FX PvP settlement orchestration service, continues to be powered by Baton’s distributed ledger technology (DLT), which has successfully and safely settled more than US$8.1 trillion in value to date. Click on the links to learn more about the new service and why we’ve partnered with OSTTRA to accelerate global access to PvP settlement for all market participants.

OSTTRA is a joint venture between S&P Global & CME Group. It brings together CME’s optimisation businesses –Traiana, TriOptima, and Reset – and IHS Markit’s MarkitSERV.

Our new partnership does not impact the operation of our other services and solutions including Core-Payments, Core-Liquidity and Core-Collateral

Why we designed Core-FX for PvP Settlement

Mitigating foreign exchange (FX) settlement risk (or “Herstatt risk”) by increasing adoption of payment versus payment (PvP) settlement mechanisms has remained the focus of FX policy makers for many years. Core-FX was designed and deployed to extend access to PvP settlement for wholesale market participants, enabling bilateral FX transactions to be settled immediately and on-demand via PvP.

While existing PvP arrangements enabled 18 currencies to be eligible for PvP settlement, Core-FX enabled the benefits of PvP settlement to be extended across all currencies (including emerging market currencies) and counterparties, allowing:

  • Real assets, held at commercial bank accounts to be settled via PvP
  • PvP settlement processes to be reduced from hours to minutes
  • FX settlement participants to pre-agree when to settle and do so multiple times a day – without the liquidity and funding constraints of pre-funding
  • Settlement timeframes to be aligned with corresponding liquidity events – for more effective use of funding
  • Previously opaque processes to be monitored with full transparency

Following our partnership with OSTTRA, designed to bring new levels of scalability and flexibility to bilateral FX PvP settlement, Core-FX is now operated by OSTTRA.

Learn more: PvP settlement orchestration

“Since 2018, HSBC FX Everywhere has used Baton’s Core FX technology to settle 16 million FX trades across 13 different currencies totalling US$8.1 trillion.” Mark Williamson, Global Head of FX & Commodities Partnerships & Propositions at HSBC, March 2024 commenting on the OSTTRA and Baton Partnership


No tokenisation required: DLT-based PvP settlement
The opportunity to settle now - Intraday FX swaps
Why Baton CORE is architected using DLT
DLT, blockchain and financial market infrastructure

The focus on increasing adoption of PvP settlement

Policy makers and industry groups continue to promote increased adoption of PvP settlement to reduce FX settlement risk. Recent examples include:

May 2023: The European Central Bank’s Supervision Newsletter focused on “Sound practices for managing FX settlement risk” stated “Banks should use payment versus payment (PvP) settlement to eliminate principal risk when settling FX transactions, where practicable.”

March 2023: Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) published a report on “Facilitating increased adoption of payment versus payment (PvP)”

July 2021: Principle 35 of the FX Global Code advocates “Market Participants should reduce their Settlement Risk as much as practicable, including by settling FX transactions through services that provide PVP settlement where available.”

Core-FX from inception to today



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Latest Announcements:

OSTTRA and Baton Systems partner to launch FX PvP service, mitigating settlement risk in FX markets
Baton Systems Triumphs Again, Winning "Best FX Settlement Innovation" at Euromoney Foreign Exchange Awards 2023
Baton Systems’ DLT Now Risklessly Settling Offshore Yuan Transactions in World First
Baton Systems wins “Best Settlement Initiative” at the FX Markets e-FX Awards for the second year running


We are proud to be recognised as a leading industry innovator.

Learn about Baton's CORE solutions for Liquidity, Payments and Collateral Management


With Core-Liquidity, asset ownership can be transferred in real time, on demand, 24/7, in a legally enforceable way.



Gain complete, real-time visibility and orchestrated control of all wholesale payments and settlements across all business silos.



With Core-Collateral, FCMs and CCPs can automate and optimise collateral holdings and expedite the movement of cash and securities.