The Huntington National Bank has joined the CHIPS network, a private-sector U.S. dollar clearing and settlement system, to clear and settle high-value domestic payments.
Huntington Bank will have new capabilities to send and receive payments over the CHIPS network, which processes more than $2 trillion in payments daily and is operated by The Clearing House. Participation in CHIPS enhances Huntington’s ability to support high-value payment activity through a secure and well-established settlement infrastructure that is used by financial institutions globally. By minimizing the amount of capital required to support large-value payment activity, CHIPS also enables participating banks to redeploy liquidity into other uses such as lending, investment and client financing.
“At Huntington, we drive our payments strategy by putting our customers at the center of everything we do,” Deepak Kapoor, head of payments product with Huntington Bank said in a release. “Participating in the CHIPS network strengthens our ability to deliver reliable, high-value and scalable payment solutions to our clients and support their domestic payments needs, particularly in an increasingly dynamic economic environment.”
The CHIPS system matches and offsets payments throughout the day, supporting the settlement of a high volume of payments with a comparatively small funding base. This results in economic benefits for participants and their clients, including reduced operational friction and improved access to funds.
Financial institutions globally rely on the CHIPS network for the secure and final settlement of U.S. dollar payments for critical domestic and cross-border activity.
“The addition of Huntington Bank to the CHIPS network reflects the continued demand for liquidity-efficient, resilient and reliable payment infrastructure,” Michael Knorr, senior vice president with CHIPS Product Management at The Clearing House, said. “CHIPS enables participants to reduce funding demands while supporting growing payment volumes, creating meaningful economic value for banks and their clients.”