[2] Together with the Federal Reserve Banks' Fedwire Funds Service, CHIPS forms the primary U.S. network for large-value domestic and international USD payments where it has a market share of around 96%.
Unlike the Fedwire system which is part of a regulatory body, CHIPS is owned by the financial institutions that use it.
First, it is privately owned (by The Clearing House Payments Company LLC), whereas the Fed is part of a regulatory body.
The Fedwire system would require two separate payments for the full amounts ($1.2 million to American Express and $800,000 to Bank of America).
According to the Federal Financial Institutions Examination Council (FFIEC), an interagency office of the United States government, "any banking organization with a regulated U.S. presence may become an owner and participate in the network.