American multinational megabank, Wells Fargo, has revealed its plans to launch a digitized platform which will be used for internal settlements. The service, Wells Fargo Digital Cash, as well as the company’s own U.S. dollar-backed stablecoin, are slated for debut in 2020 and targeted at making USD transfers with a broader plan to accommodate transfers in other currencies within the whole Wells Fargo network.
Wells Fargo is an American community-based financial services firm that offers banking investment as well as mortgage products and services to its customers in global locations, holding about $1.9 trillion in assets value.
The blockchain platform based on the Distributed Ledger Technology (DLT) will be hosting the service which will be making use of the company’s U.S. dollar-linked stablecoin to perform transactional activities in near real-time. DLT is said to be built on the Corda Enterprise, which is an enterprise version of R3‘s blockchain technology.
The internal settlement service is a proprietary platform which means it will only be of use to/within Wells Fargo without bridges of connection to any other digital currency solutions available in the financial markets. Digital Cash will equip Wells Fargo with a service that can bypass barriers restricting them from making real-time transactions.
The Wells Fargo Digital Cash will be used to make cross-border payments within its entire global network, with a highly secure platform that will hold a trusted database of records. Digital Cash aims at driving the operational efficiencies of the company, allowing settlements to be made with reduced time and cost benefits without the need for intermediaries.
This will benefit Wells Fargo with the expansion of operating hours without any limitations arising from traditional posting infrastructure or differences in the infrastructure across its global network.
To enjoy the advantages of the service, corporate clients are not required to change any of their payment processes, relationship management practices as well as cash management responsibilities.
While talking about the new development, Wells Fargo’s head of the Innovation Group, Lisa Frazier, noted:
“As a result of the increasing digitization of banking services globally, we see a growing demand to further reduce friction regarding traditional borders, and today’s technology puts us in a strong position to do that. We believe DLT holds promise for a variety of use cases, and we’re energized to take this significant step in applying the technology to banking in a material and scalable way.
Wells Fargo Digital Cash has the potential to enable Wells Fargo to remove barriers to real-time financial interactions across multiple accounts in multiple marketplaces around the world.”
The DLT network also aims at being a transformable company platform that can be used to build and integrate other DLT-based applications.
Previously, Wells Fargo had its hands on notable blockchain projects such as shipping cotton from the United States to China, one which it claims to be the first international trade with blockchain technology.