CHIPS Liquidity Algorithm Saves Financial Industry Billions

Key Facts

In 2023 this algorithm generated an economic value for CHIPS participants and the financial system of $4.99 billion, or $13.8 million per day, estimates The Clearing House, the operator of CHIPS and the leading innovator and operator of U.S. payments networks.
The economic value to participants and the industry from the liquidity efficiency of CHIPS can be approximated by considering the opportunity cost of routing CHIPS payments, which in 2023 averaged $1.8 trillion per day, through less liquidity efficient payment channels.
Beyond this economic value, the liquidity efficiency of the CHIPS network allows CHIPS participants and their customers to deploy scarce liquidity more flexibly and contributes to a more nimble and less risky financial system.
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.