CHIPS is the largest private sector USD clearing system in the world, clearing and settling $1.8 trillion in domestic and international payments per day.
CHIPS provides fast and final payments and the most efficient liquidity savings mechanism available today. Its patented algorithm matches and nets payments resulting in an extremely efficient clearing process.
This large value payment system has more than 40 participants and is the private-sector counterpart to Fedwire.
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.
To learn more, download the study: The Use of Liquidity in CHIPS®