The Clearing House taps Quant for tokenised deposit network

This news signals a major shift in how money moves behind the scenes of your financing programs. The Clearing House, which operates the primary private-sector payment systems in the U.S., is building a network for 'tokenized deposits.' For a retailer or operator, this means the gap between a customer hitting 'buy' and your business receiving cleared, settled funds is about to shrink toward zero. Currently, even 'instant' payments can take time to fully settle across different banking ledgers. This new infrastructure uses blockchain-style technology to make bank deposits programmable and interoperable. For businesses offering consumer financing, this technology will eventually simplify the reconciliation process. It reduces the risk of payment failures and lowers the overhead costs associated with managing multiple lending partners. As this rolls out, expect your financing providers to offer faster payouts and more flexible payment scheduling. It essentially upgrades the plumbing of the U.S. banking system to be as fast as the digital interfaces your customers use. While you don't need to change your tech stack today, keep an eye on your lenders’ settlement speeds, as this technology will soon make 'next-day' funding feel like a legacy service.

Source: Finextra — Lending

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