While this approach remains a practical way to deliver these services, it can limit flexibility and control over pricing, liquidity sourcing, and payments and balance management, impacting their ability to compete as FX volumes increase and client expectations evolve. As a result, some firms are now looking to directly manage access to pricing and their own nostro accounts for a core set of currencies, while continuing to rely on liquidity providers for broader coverage. The Derivative Path and Baton Systems integration is designed to support this shift.

It enables banks to operate a hybrid operating model, maintaining existing correspondent relationships for non-nostro currency activity, while accessing multiple liquidity providers and gaining front-to-back operational and liquidity control over the currencies and accounts they choose to manage directly. This expands pricing options, reduces reliance on a single provider, and creates a more flexible and controlled operating model – allowing institutions to scale their FX and multi-currency activities without building and operating independent infrastructure. The solution enables banks to take direct control of their FX and multi-currency business across the full FX lifecycle, from execution through to settlement and reconciliation.

Banks can offer commercial clients multi-currency accounts while ensuring real-time visibility over nostro balances and intraday positions, greater flexibility in how FX is priced and delivered, and automated payment control. This allows institutions to manage liquidity with greater precision, improved responsiveness to clients, and capture more value from their FX business. For institutions that have outgrown single-dealer arrangements for their core currencies, it provides the infrastructure to scale systematically while preserving the correspondent and liquidity provider relationships that remain central to serving the full breadth of client needs.

By combining Derivative Path’s connectivity to multiple liquidity providers with Baton’s real-time operational control, the solution brings liquidity access and end-to-end visibility together in a single framework. This provides the infrastructure required to support direct nostro management, real-time monitoring of balances and exposures, and coordinate FX operations across currencies and counterparties. “Regional banks with established FX programs know what the next level looks like, but most technology solutions either underserve them or require an enterprise build that takes years,” said Zack Nagelberg, Co-Founder and President of Derivative Path.

“What we have built with Baton gives these institutions the operational control they need to grow their FX business on their terms. Banks that understand nostro management, spread control, and the complexity of handling incoming FX flows at scale will recognize immediately what this combination makes possible.” “For years, the infrastructure required to manage FX settlement and nostro operations at scale has been refined within the largest global institutions,” said Arjun Jayaram, Founder and CEO of Baton Systems. “By partnering with Derivative Path we’re making that same level of control, visibility, and operational rigour accessible to regional banks in a way that is practical to implement – enabling these institutions to take direct control of their FX business, service their core customers and compete more effectively, without the cost, complexity, and timelines, associated with building out those capabilities themselves.” Built on a cloud-native, API-first architecture, the platform also incorporates SWIFT connectivity, enabling banks to securely exchange payment instructions using their own BIC and track them in real-time through SWIFT gpi.

This provides greater visibility into payment status and control over execution, without requiring banks to build and maintain their own SWIFT integration or upgrade existing wire platforms – reducing implementation time, cost, and complexity. Combined with real-time visibility across accounts and currencies, automated reconciliation, and configurable payment controls, the platform supports secure and efficient FX operations at scale. About Derivative Path Derivative Path combines advanced technology with financial expertise to serve capital markets participants,