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Unlocking Liquidity: How CHIPS® Drives Efficiency and Innovation in Global Payments, Featuring John Foran of Deutsche Bank
Recorded live at Sibos 2025 in Frankfurt, host Greg McSweeney speaks with John Foran (Product Manager, Deutsche Bank) and Michael Knorr (SVP, CHIPS Product Management, The Clearing House) about how the CHIPS network is driving liquidity efficiency and market resiliency. They explain real-time netting, the 29:1 liquidity multiplier, and how the network delivers more than $5 billion in annual liquidity savings for participant banks. The discussion also covers ISO® 20022 adoption (including structured/hybrid addresses), the push toward 24/7 high-value payments, and the innovations shaping the future of global banking and liquidity management. Listen to Payments Nerds Season 7, Episode 19 to hear the full conversation.CHIPS Liquidity Savings Mechanism is the Most Efficient in the World
CHIPS, the high-value payment system from TCH, is highly efficient in its use of liquidity when compared to other major payment systems around the world, and effectively serves as the liquidity savings mechanism for the entire U.S. large-value payments system. It also underscores the nature of CHIPS as an early settlement system that reduces operational risk for participants, end users, and the financial system generally, and distinguishes CHIPS as a critical element of the nation’s payments infrastructure. Hear from Jamie McAndrews, an economic consultant and CEO of TNBUSA Inc., and Richard Dzina, Senior Vice President, at The Clearing House, discuss how CHIPS more efficiently uses liquidity, which is a benefit not only to the banks on the CHIPS network, but also to the entire high-value payment system in the United States. Listen to this episode.Whitepapers
The Strategic Role of the CHIPS® Network in Modern Liquidity Management
In a landscape defined by quantitative tightening and increased regulatory pressure, financial institutions are turning to the CHIPS® network for intelligent liquidity deployment. This white paper explores how CHIPS leverages patented multilateral netting, advanced settlement algorithms, and intraday finality to reduce systemic risk and dramatically improve liquidity efficiency. With flexible funding tools and the ability to settle high-value payments in real time, CHIPS enables participants to free up billions of dollars in capital while maintaining control and resilience.
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Assessing the Efficiency of CHIPS: FNA Simulation Prepared for The Clearing House
The liquidity savings mechanism utilized by CHIPS, the largest private sector high-value clearing and settlement system in the world, generates powerful liquidity savings for CHIPS participants and the financial system. An independent review of CHIPS conducted by FNA, a technology firm that specializes in advanced network analytics and simulation, found that CHIPS is “extremely efficient” in its use of liquidity across all performance metrics.
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CHIPS Liquidity Savings Mechanism is the Most Efficient in the World
This study describes how CHIPS is highly efficient in its use of liquidity when compared to other major payment systems around the world, and effectively serves as the liquidity savings mechanism for the entire U.S. large-value payments system. It also underscores the nature of CHIPS as an early settlement system that reduces operational risk for participants, end users, and the financial system generally, and distinguishes CHIPS as a critical element of the nation’s payments infrastructure.
Download the study