NEW YORK — The CHIPS network, the largest private-sector system for high-value payments, reported increased usage and economic benefits in 2025, underscoring its growing role in U.S. dollar payment flows, according to The Clearing House.
Average daily payment value on the CHIPS network rose 9% year over year to $2.014 trillion, while average daily volume increased 12%, reflecting expanded use for both domestic and cross-border transactions, The Clearing House said.
The operator also reported higher liquidity savings and economic benefits:
- Average daily economic savings increased to $15.4 million, up from $14.3 million in 2024
- Annualized savings reached $5.5 billion
‘Capital That Can be Redeployed’
Those savings represent capital that can be redeployed for lending, investment and other client activities instead of being tied up in prefunding requirements, according to The Clearing House.
The network continued to perform amid macroeconomic uncertainty, including geopolitical risks and government funding disruptions, as participating banks processed higher volumes while maintaining control over intraday liquidity, the organization said.
Liquidity efficiency on the CHIPS network measured 26-to-1 in 2025, meaning each $1 of intraday funding supported $26 in settled payments. The Clearing House said this reflects banks’ decisions to hold additional liquidity buffers while still benefiting from the system’s optimization capabilities.
The network’s liquidity-saving algorithm enabled banks to settle roughly $2 trillion in daily payments using about $96 billion in funding, compared with an estimated $442 billion required under traditional real-time gross settlement systems, the organization said.
‘More Flexibility’
“This allows for more flexibility to redeploy capital and have consistent access to funding,” Michael Knorr, senior vice president of CHIPS product management at The Clearing House, said in a statement.
The organization said the system’s ability to continuously match and offset payments throughout the day allows participants to recycle liquidity more efficiently, a feature that may become increasingly important during periods of market stress.
The Clearing House said the scaling benefits of the CHIPS liquidity engine reinforce its role as a critical component of U.S. payments infrastructure.
