The Clearing House plots next gen settlement for on-chain network

The Clearing House (TCH) is building a new network designed to let banks settle transactions using tokenized deposits. For retailers, this represents the next evolution of how you get paid. Currently, even 'instant' payments can have behind-the-scenes delays between banks. This new system aims for 'atomic settlement,' meaning the transfer of digital assets and the actual money happens simultaneously and permanently. This technology is slated for a 2027 launch. It is designed to work across different banking systems, reducing the friction that usually comes with moving money between different financial institutions. While this sounds like high-level banking infrastructure, the ripple effect for your business is significant. It paves the way for faster availability of funds and lower transaction risks. As tokenized deposits become a standard, the gap between a customer clicking 'buy' and the cash being fully cleared in your account will continue to shrink. This is particularly important for high-ticket merchants who currently deal with settlement lags that impact cash flow and inventory management.

Source: American Banker — Top News

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