- The CHIPS network set a Black Friday record, processing 1,083,550 payments worth $2.63 trillion, driven by factors like foreign transactions and month-end volume increases.
- Since adopting the ISO 20022 message format in April, the CHIPS network has improved efficiency in cross-border payments, reinforcing the U.S. dollar’s role in global trade.
What happened: Payments record
The CHIPS network, the world’s largest private-sector clearing and settlement system, set a new record on Black Friday, processing 1,083,550 payments valued at $2.63 trillion. Several factors drove the surge, including transactions from foreign banks that don’t observe U.S. Thanksgiving, and the network’s typical increase in volume at month-end.
Since adopting the ISO 20022 message format in April, the CHIPS network has handled more transactions. The upgrade aligns it with global payment systems, boosting cross-border payment efficiency.
Richard Dzina, Senior VP at The Clearing House, noted that the record highlights the network’s key role in global trade and its importance in supporting the U.S. dollar’s role as the world’s leading reserve currency.
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Why it is important
The record-breaking performance of the CHIPS network on Black Friday underscores its vital role in the global financial system. By processing $2.63 trillion in payments, the network demonstrated its capacity to handle large-scale transactions efficiently, particularly during peak times. The surge was partly due to foreign transactions and the month-end volume increase, highlighting CHIPS’ importance in facilitating cross-border payments.
The adoption of the ISO 20022 message format in April further enhanced its efficiency. This upgrade aligned CHIPS with global payment systems, improving transaction speed and accuracy. As a result, the network supports the U.S. dollar’s dominant position in international trade and finance.
Ultimately, the record reinforces the critical role the CHIPS network plays in global trade, ensuring smooth, reliable transactions across borders. Its capacity to manage such high volumes showcases its importance in maintaining financial stability and driving economic growth.
