Wells Fargo Announces Development of Internal Stablecoin

Move aside Ripple! According to a recent press release issued by the financial institution, Wells Fargo, they are currently in the process of developing their own dollar-backed stablecoin that will be operated on their first blockchain platform.

Date: 
September 20, 2019
Read time: 
2 minutes

Wells Fargo Announces Development of Internal Stablecoin

Author: Dylan B
Date: 
September 20, 2019
Read time: 
2 minutes

Move aside Ripple! According to a recent press release issued by the financial institution, Wells Fargo, they are currently in the process of developing their own dollar-backed stablecoin that will be operated on their first blockchain platform.

Move aside Ripple! According to a recent press release issued by the financial institution, Wells Fargo, they are currently in the process of developing their own dollar-backed stablecoin that will be operated on their first blockchain platform.

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. (Liza Frazier - The head of the innovation group at Wells Fargo)

The stablecoin, which will be known as Wells Fargo Digital Cash and will operate on their digital ledger tech platform, will be used for internal settlement within the business as well as to reduce many of the difficulties that come with conducting cross-border payments when sending money internationally, such as not being able to move funds outside of operating hours, paying fees and waiting a significant amount of time to see transactions being completed, and having to use a third party to send and exchange funds. 

These developments have been spurred largely by the banking industry’s transition into digital finance and the need for better tools that can help navigate businesses through the many challenges associated with traditional finance. 

Regarding the technical aspects of this new product, Wells Fargo has built their own blockchain using Corda Enterprise, the enterprise version of R3’s blockchain technology. Robert Cabrera, a spokesperson for the bank, made this statement regarding why the bank decided to use R3 for their needs: 

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.

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While we will not see this product in 2019, the bank hopes to launch Wells Fargo Digital Cash within the next year. The transfers are expected to feature only U.S. dollars at first but the institution also plans on making other currencies available as they expand their operations globally. 

The head of the innovation group at Wells Fargo, Liza Frazier, spoke more about their ambitious plans with this new technology: 

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.

Joining the likes of JPMorgan in the transition over to blockchain-based financial solutions, we can expect to see further adoption and development of cryptocurrency products in major financial institutions. 

Posted by Dylan B

Dylan Buckley is a writer based in California. He became interested in cryptocurrency upon discovering it in 2014 and soon started investing as well as writing for a wide variety of clients and crypto-startups in the space. When he is not producing content for individuals and businesses, he is typically working on his own self-development content or making music.

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