New York – The CHIPS® network, the largest private-sector high-value payment system in the world, reported increased network usage, economic value, and resilient liquidity performance in 2025, demonstrating the growing importance of its patented liquidity algorithm to participant banks and their customers.

In 2025, the CHIPS network activity increased materially with average daily value rising nine percent year-over-year to $2.014 trillion and average daily volume increasing 12 percent year-over-year, underscoring the network’s expanding role in supporting large-value domestic and cross-border U.S. dollar payments.

The liquidity savings and economic benefits of the CHIPS network also increased in 2025. Daily average economic savings rose to $15.4 million, up from $14.3 million in 2024, driving annualized savings of $5.5 billion. For customers, these savings represent capital that can remain available for lending, investment, and client activity, rather than being trapped in payment prefunding requirements.

From a customer perspective, this growth provided clear benefits. Despite heightened macroeconomic uncertainty, including geopolitical risks and government funding disruptions, participants relied on the CHIPS network and its best-in-class liquidity savings engine to process higher volumes efficiently while maintaining greater control over intraday liquidity positions.

Liquidity Efficiency

In 2025, liquidity efficiency measured 26:1, meaning that every $1 of intraday funding supports $26 in settled value. This reflects a deliberate and prudent choice by bank treasurers to pre-position additional liquidity as a buffer in volatile conditions. This posture highlights the flexibility of the CHIPS liquidity algorithm: participants can prioritize certainty and risk management without sacrificing settlement throughput or reliability.

The CHIPS liquidity-saving algorithm allows banks to settle, for example, $2 trillion in average daily payment value with approximately $96 billion in funding, versus an estimated $442 billion in funding if those payments were processed through a traditional real-time gross settlement system.

Benefits for CHIPS Participants:

This liquidity efficiency allows banks to redeploy capital into higher-yielding lending, short-term investments, trade finance, and client credit lines. For corporate and institutional clients, this translates into greater balance sheet capacity and more consistent access to funding, even when liquidity conditions tighten.

“The CHIPS network provides participating banks the ability to adapt their intraday liquidity posture to real-world conditions while still achieving best-in-class liquidity and economic savings,” said Michael Knorr, Senior Vice President, CHIPS Product Management at The Clearing House. “For banks and their clients, this allows for more flexibility to redeploy capital and have consistent access to funding.”

By continuously matching and offsetting payments throughout the day, the patented CHIPS liquidity engine enables participants to recycle liquidity earlier and more effectively, a capability that may become especially critical during periods of market stress. As network volumes grow, the benefits of this liquidity optimization continue to scale across the system, reinforcing the CHIPS network’s role as a resilient, cost-effective, and systemically important payments infrastructure.

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 real-time 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