Derivative Path will leverage TxB’s API-based platform to enable regional and community banks to offer global payment solution to their customers, and access FX payments


Goldman, Derivative Path will boost FX. (Credit: Jason Leung on Unsplash)

Derivative Path has teamed up with Goldman Sachs’ Transaction Banking (TxB) unit to enable financial institutions to provide foreign exchange (FX) and global payments services.

Under the collaboration, the capital markets technology firm will leverage TxB’s API-based platform to enable its clients to offer global payment solution to their customers.

The cloud-based solution is said to simplify cross-border payments by streamlining workflows, providing transparency in pricing, and delivering real-time, secure payment tracking.

In addition, it leverages TxB’s global payments network to help regional and community banks easily access FX payments through the Derivative Path platform.

Derivative Path said that its SaaS-based capital markets platform, dubbed DerivativeEDGE, has been designed to enable its users effectively manage operational workflow.

Also, it is said to automate regulatory compliance, integrate real-time market data, automate swap data reporting, and confirm cleared trades.

Derivative Path CEO and co-founder Pradeep Bhatia said: “Teaming up with one of the world’s largest and most established financial institutions is a major step in the right direction of bringing greater technology sophistication and flexibility to the regional and community banking sector in the US.

“The launch of our joint solution with Goldman Sachs substantiates our mission of delivering a new wave of innovation to these firms.”

The partnership forms the latest effort by Goldman Sachs to gain market share in the transaction banking sector, which the company entered in 2019, reported Reuters.

Transaction banking involves handling cash for governments and corporations, including processing payrolls and securing foreign exchange rates for payments to other countries.

Goldman Sachs Transaction Banking payments global head Art Brieske said: “Regional and community banks now have access to the same global payments capabilities as large money centre banks.

“We are pleased to collaborate with Derivative Path to provide access to our global payments capabilities through their platform and provide regional and community banks with a comprehensive yet simplified and efficient cross-border payment solution.”

Last month, the US Securities and Exchange Commission (SEC) launched an investigation on Goldman Sachs’ asset-management division over its ESG funds.