Osttra FX PvP Service Embraces Tokenised Bank Funds
Posted by Colin Lambert. Last updated: June 17, 2025
Osttra’s FX payment-versus-payment (PvP) settlement service has expanded following a partnership with Partior, meaning the network, which is based upon Baton’s distributed ledger technology, can now offer participants enhanced liquidity management and capital efficiency through tokenised commercial bank funds.
The collaboration with Partior further extends the network’s capabilities, delivering access to a live ecosystem with institutional banks offering settlement in a growing range of currencies, including USD, EUR and SGD tokenised commercial bank money. It also allows institutions to execute and manage post-trade FX processes and settle tokenised commercial bank funds on demand, for 24 hours a day, 7 days a week.
“Our partnership with Baton last year [saw us] set out to combine the global Osttra network with Baton’s technology to enable the widespread adoption of FX PvP, extending the critical benefits of liquidity optimisation and settlement risk mitigation to a broader range of currency pairs and market participants,” says John Stewart, co-CEO of Osttra. “With tokenised commercial bank assets rapidly emerging as a transformative force, the integration and partnership with Partior is a significant next step on our journey, acting on the feedback from our early adopters to provide more flexibility in settlement options.”
Participants can continue to benefit from the existing automated matching, netting and settlement orchestration which delivers programmable atomic PvP, but can now elect to settle FX transactions using either fiat or tokenised commercial bank money or an asset with the credit characteristics of central bank money, Osttra says.
Furthermore, they add, the network’s interoperable design can orchestrate settlement combinations, for example, where one currency leg involves traditional fiat and the other leg tokenised money. This flexibility allows network participants to align tokenised settlements with their institution’s liquidity demands across global markets, while minimising pre-funding requirements when dealing with currencies in different time zones.
The addition of Partior comes just weeks after the Osttra/Baton system connected to Fnality’s Sterling Payment System, and will be welcomed as further signs of progress in providing greater choice in FX settlement, just weeks after Osttra was sold to private equity firm KKR.
“As the industry moves beyond experimentation toward real-world adoption of digital assets, the ability to settle FX trades with tokenised commercial bank money efficiently is a great step forward,” says Humphrey Valenbreder, CEO, Partior. “It’s not just about speed or 24/7 access – it’s about setting the stage for a more connected, resilient, and accessible financial system. With real-time, PvP settlement across both fiat and tokenised assets, this service gives institutions a smarter way to manage liquidity, reduce risk, and unlocks new opportunities to optimise capital across global markets.”
Arjun Jayaram, Founder and CEO, Baton Systems, adds, “As the digital settlement landscape continues to rapidly evolve, we’re witnessing a major shift in how markets operate. The transition from fiat to digital assets is ushering in an era where banks can leverage multiple settlement venues to optimise liquidity and ensure safe settlement. With Partior now integrated with our institutional-grade DLT, we provide network participants with even greater choice in the account structures they can use to orchestrate settlement across venues for an increasingly diverse range of assets.”
