TCH expands adoption of bank account tokenization tool #
The Clearing House (TCH) announced broader adoption of its Secure Token Exchange solution, which enables banks and fintechs to replace account and routing numbers with tokens for enhanced payment security. According to PYMNTS, several major U.S. banks and payment providers have now integrated the tool, marking a milestone in reducing fraud and data-sharing risks in digital transactions
The system allows financial institutions to issue tokens that act as secure substitutes for sensitive account information, simplifying authentication while maintaining compatibility across payment rails. TCH said the growing adoption reflects strong industry interest in privacy-preserving technologies as open banking and instant payments gain traction in the United States
By abstracting real account data from merchants and third parties, the initiative aims to improve consumer protection and streamline compliance with data-security regulations. TCH plans to continue onboarding participants through 2026 as part of its effort to strengthen the U.S. payments infrastructure.