CHIPS

Private USD clearing complementing Fedwire.

Definition

CHIPS operates bilateral and multilateral netting, with final settlement via Fedwire end-of-day. ISO 20022 migration completed April 2024. ~40 participating banks including the largest worldwide. USD 96 trillion settled in 2024.

Origin

Launched 1970 by 9 New York banks ; operated by The Clearing House Payments Company.

Example in context

HSBC transfers USD 50M to Bank of America via CHIPS for an FX deal — netting then settlement.

Related terms

• Fedwire — related system.