Wells Fargo to Develop U.S. Dollar-Linked Stablecoin
Wells Fargo, the multinational bank based in San Francisco, is building a U.S dollar-linked stablecoin that will be first tested in their pilot project before it becomes part of their mainstream business. The tokenized dollar will enable real-time cross-border settlement across its international network of banks.
Wells Fargo Digital Cash, the name that it’s been dubbed, will help reduce friction and bottlenecks that are inherent in the existing global money transfer system. Lisa Frazier, Head of Innovation at Wells Fargo said in the press release: “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.” Frazier went on to say that “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.”
Utilizing blockchain technology will also allow Wells Fargo to transfer funds between its international locations 24 hours a day and remove the barrier of strictly transferring funds only during “business hours”. This proprietary blockchain platform being built by Wells Fargo enables the bank to move money globally in real-time by using the digital token as its global settlement tool.
According to CoinDesk, Wells Fargo said that its decentralized ledger technology (DLT) is built on Corda Enterprise. “R3 Corda Enterprise was designed by and for financial institutions. It is a distributed ledger solution that allows for appropriate data confidentiality controls, scales to bank transaction volumes and throughput, and supports an information security design that is compatible with Wells Fargo’s industry regulated standards,”said Wells Fargo spokesman, Roger Cabrera. Planned for a 2020 launch, the pilot is expected to initially conduct US Dollar transactions, with eventual plans to enable multicurrency transfers.
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