The Clearing House taps Quant for tokenised deposit network

The Clearing House has selected Quant to provide its Overledger interoperability platform for a tokenised deposit network that will let banks issue and transfer tokenised deposits across distributed ledgers and existing banking systems.

Quant will supply Overledger to connect member banks and their core systems to the network. The network is designed to let banks create tokenised representations of customer deposits that can move and settle on distributed ledgers while remaining liabilities on the issuing bank’s balance sheet.

Overledger will act as a gateway between multiple blockchains and legacy infrastructure, enabling transfers of tokens between different ledgers and existing payment rails without requiring replacement of core banking systems.

Quant’s software will handle transaction routing, message validation and reconciliation so that tokenised balances on ledgers align with banks’ internal deposit ledgers and audit trails are maintained.

The Clearing House, a US payments association owned by large commercial banks and operator of major payment systems, has been developing the network to support on-ledger transfers and instant settlement among participating institutions.

The network is being built to preserve deposit protections and regulatory reporting requirements while allowing deposits to be represented as digital tokens for on-ledger movement.

Quant was founded to provide interoperability software that connects distributed ledgers with off-chain systems. Its Overledger platform provides a multi-ledger messaging and routing layer to translate and route transactions across different ledger technologies.

The agreement follows increased interest from banks and payment operators in using tokenisation to update settlement infrastructure and test new payment architectures.