Wells Fargo plans to pilot its own digital currency, which will run on Wells Fargo’s first distributed ledger technology (DLT) platform. Wells Fargo to pilot dollar-linked digital currency for internal settlement.
This move will help cash transactions across borders and between branches in real-time.
The company has dubbed it as ‘Wells Fargo Digital Cash’. It will be linked to the U.S. dollar and transmitted using the company’s distributed ledger technology to maintain track of its internal network payments.
According to the company’s press release, this initiative will allow the business to complete internal book transfers of cross-border payments within its global network using digitized money.
The company’s international locations will also be able to transfer funds between each other using the digitized token without limitations. As the final settlement will not involve any third parties, both time and cost which will be reduced per transaction.
Lisa Frazier, head of the Innovation Group at Wells Fargo said:
“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.”
The American financial firm confirmed that the concept of moving value between the U.S. and Canada has been effectively implemented. The internal DLT network will provide Wells Fargo with a reusable enterprise utility to build and deploy multiple DLT-based applications.
The pilot is expected to launch next year, starting with USD, and then to expand to multi-currency transfers and the entire global Wells Fargo branch network.
Earlier this year, Wells Fargo joined its U.S. competitors in prohibiting credit card clients from buying Bitcoin because of the cryptocurrency’s volatility.
Wells Fargo, with $1.9 trillion in assets, is a diverse, community-based financial services firm.