New York – The CHIPS^® network, the largest private sector high-value clearing and settlement system in the world, is leading the charge in optimizing liquidity efficiency and delivering significant economic benefits to participants. In 2024, the CHIPS liquidity algorithm drove over $5.14 billion in annualized economic savings, equating to $14.27 million per day, proving itself as an indispensable asset to the global financial system.

As interest rates fluctuate and institutions strive for greater efficiency, the CHIPS network continues to outpace other traditional high-value payment systems. In 2024, its liquidity efficiency increased to 29:1 from 26:1 in 2023, meaning that every $1 in intra-day funding supports $29 in settled value. 

The financial impact is undeniable. CHIPS facilitated an average of $321 billion in daily liquidity savings in 2024, allowing institutions to reinvest capital that would otherwise be locked up in less efficient payment processes. This unparalleled efficiency empowers banks to channel their resources into other activities, such as lending and investments, thus driving broader economic growth and stability.

Beyond direct cost savings, the CHIPS network supports financial stability. By maximizing liquidity efficiency, the network provides financial institutions with the flexibility to manage unexpected market shifts and mitigate systemic risks. In times of economic stress, this adaptability proves invaluable, ensuring that liquidity remains accessible when it's needed most.

“CHIPS allows the participating banks to recycle liquidity earlier in the operating day, which can be important during times of financial stress when liquidity often becomes scarce,” said Michael Knorr, Senior Vice President, CHIPS Product Management at The Clearing House. “As more participants join the CHIPS network, the liquidity savings will increase as more volume and value are added to the system.”

Financial institutions in the U.S. and around the world rely on the CHIPS network to clear and settle USD payments reliably and with intra-day settlement finality. The CHIPS network’s patented liquidity savings algorithm matches and offsets payments continually, resulting in an extremely efficient settlement process. The CHIPS network is the premier USD clearing platform for international payment activity, with approximately 95% of CHIPS payments representing the USD leg of a funds transfer that begins and/or ends in another country. Through a robust network of correspondent banking relationships across its participants, CHIPS also has the capacity and reach to satisfy every domestic high-value payment need.

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About The Clearing House
The Clearing House operates U.S.-based payments networks that clear and settle more than $2 trillion each day through wire, ACH, check image, and instant payments. It is the nation’s most experienced payments company, with a long track record of providing secure and reliable systems, payments innovation, and strategic thought leadership to financial institutions. In 2017, The Clearing House revolutionized U.S. payments by introducing the RTP^® network, which supports the immediate clearing and settlement of payments, along with the ability to exchange related payment information across the same secure channel. These RTP capabilities enable all financial institutions to offer safer, faster, and smarter digital transaction services for their corporate and retail customers. Learn more at www.theclearinghouse.org.

Media Contact:
Greg MacSweeney
The Clearing House 
212-612-9282
Gregory.MacSweeney@theclearinghouse.org