Baton Systems, a blockchain-based bank-to-bank payment solution provider headquartered in the US, has obtained $12m investment in a Series A round led by Trinity Ventures.

Trinity was joined by Alsop Louie and Commerce Ventures in the fundraising.

Trinity general partner Schwark Satyavolu has now gained a seat on the Baton board.

Satyavolu noted: “Bank-to-bank settlement today is slow and manual, trapping billions of dollars that could instead be used to grow businesses.

“Baton is completely transforming the global bank payments infrastructure, leveraging the best of blockchain’s potential while mitigating its key concerns.”

With the new capital, Baton intends to speed up the global deployment of its blockchain-powered bank-to-bank payment infrastructure.

At present, the infrastructure is deployed at three of the top ten global banks, as well as exchanges and clearing houses, Baton noted.

The firm is currently said to process more than $12bn in payments every business day.

Baton CEO Arjun Jayaram said: “This investment provides us with the strategic support and firepower to scale our bank-to-bank payment solution for the world’s leading financial institutions even faster and more effectively.

“Speed to market is critical in an industry that is crying out for modernisation while at the same time facing a daunting global regulatory environment.”