In June The Clearing House (TCH) announced plans to develop an interoperability solution to enable interbank payments using tokenized deposits, with a target launch in the first half of 2027. It has selected Quant to provide the interoperability, orchestration and transaction management layer to enable clearing and settlement. Quant is already providing a similar solution to the Great British Tokenised Deposit (GBTD), which recently conducted its first live customer transactions.
Today some of the largest US banks have their own tokenized deposit solutions, but they primarily serve their own clients. By enabling interoperability between the separate platforms using APIs, the TCH solution will allow payments between customers of different banks. In addition to moving money on behalf of clients, the banks also need to settle up with each other. That is why TCH is a natural home for the On-Chain Money Initiative, because it already houses the RTP and CHIPS networks that enable interbank settlement in central bank money.
Key functionality supported by the On-Chain Money Initiative will be the instant settlement expected of onchain payments and the ability to trigger conditional payments. The use cases are similar to those for individual banks, including cross border payments, treasury liquidity management and the settlement of digital asset transactions.
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