The price of the global cryptocurrency Quant (QNT) more than doubled in just one week. This surge is largely attributed to news of its involvement as a technology partner in The Clearing House’s deposit token initiative, which has significantly boosted investor confidence.
CoinMarketCap reported on October 4 that Quant’s price hit 228.12 USD on October 2, marking a staggering 122.53% increase from the previous week. This represents the highest weekly price jump among all cryptocurrencies worldwide.
Quant, which was trading around 98 USD last week, began its upward trajectory on September 25. It then experienced a dramatic 122.34% surge on September 28, peaking at 356.99 USD – its highest level in nearly five years, not seen since November 2021.
The catalyst for this remarkable rise appears to be Quant’s collaboration with The Clearing House. On September 24, The Clearing House announced on its website that it had chosen Quant as the technology partner for its On-Chain Money Initiative, which aims to create a deposit token payment network.
The Clearing House is a major player in the U.S. financial infrastructure, operating crucial payment networks including wire transfers, account transfers, and real-time payments. These networks process an astounding 2 trillion USD in transactions daily.
At the heart of this initiative is the creation of a shared network where financial institutions can exchange deposit tokens and settle transactions. Deposit tokens are blockchain-based representations of traditional bank deposits. This system maintains existing deposit regulations while enabling automatic fund transfers based on conditions pre-set by financial institutions.
Quant’s role is to provide the technology that bridges different systems and manages transaction processing. It will facilitate deposit token transaction settlements while also integrating with existing U.S. payment networks, including the Real-Time Payments (RTP) network and the Clearing House Interbank Payments System (CHIPS).
This integration will allow banks and businesses to leverage both traditional payment systems and the new deposit token network. Transactions will be executed automatically once agreed-upon conditions are met, significantly reducing manual processing and delays.
Sal Karakaplan, Chief Strategy Officer of The Clearing House, emphasized the importance of reliable, scalable technology in building an interbank infrastructure for deposit tokens. He noted that Quant’s technology and expertise will enable financial institutions of all sizes to participate in this network.
The Clearing House envisions using this new network for various applications, including corporate cash and liquidity management, cross-border payments, and digital asset transactions. It will enable 24/7 fund management and payment processing for companies, while allowing financial institutions to join a shared network without the need to build their own separate systems.
The launch of this network is slated for the first half of next year. The Clearing House plans to reveal more details about participation methods and use cases as the development progresses.