Osttra and Baton Systems have added Fnality to their FX payment-versus-payment (PvP) settlement orchestration service, following a completed proof-of-concept. The move marks the first integration of a digital settlement system into the Osttra network and introduces a DLT-based asset with the credit characteristics of central bank money, says Fnality in a press release.
The proof-of-concept demonstrates the use of Fnality’s settlement system to support PvP transactions alongside commercial bank money. It enables market participants to settle FX trades using tokenised central bank funds recorded on a distributed ledger, providing additional flexibility in how and where settlements take place.
The development comes amid growing industry interest in broadening access to PvP settlement, particularly in response to increased volatility and demand for more efficient liquidity management tools. According to Osttra and Baton, the service has been shaped in consultation with 12 global banks over the past year.
Near real-time settlement
Fnality’s addition allows for near real-time settlement around the clock, extending PvP capabilities beyond traditional operating hours. The integration also supports continuous netting and payment splitting, with settlements routed to each participant’s chosen venue. This setup is designed to reduce the funding burden associated with large transaction volumes, while also addressing operational and counterparty risk.
With this step, Osttra continues to expand the scope of its PvP orchestration platform. The service originally aimed to deliver atomic settlement through automated workflows across multiple venues and asset types. The Fnality integration extends that vision by introducing blockchain-based infrastructure into the network.
