- Wells Fargo & Company recently announced the pilot of an internal settlement service called Wells Fargo Digital Cash
Wells Fargo & Company recently announced it is planning to pilot an internal settlement service called Wells Fargo Digital Cash — which will run on Wells Fargo’s first distributed ledger technology (DLT) platform.
Going forward, Wells Fargo Digital Cash is going to allow Wells Fargo to complete internal book transfers of cross-border payments within its global network using digitized cash and for those international locations to exchange that digitized cash among themselves. And to date, Wells Fargo successfully proved the concept of moving value between the U.S. and Canada.
The internal DLT network is going to be a reusable enterprise utility for Wells Fargo to build and deploy multiple DLT-based applications.
“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,” said Lisa Frazier, the head of the Innovation Group at Wells Fargo. “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.”
DLT is providing a permanent, highly secure, and trusted record of transactions. And Wells Fargo Digital Cash will run on DLT and will help Wells Fargo achieve near real-time money movement without impact to the underlying account, transaction postings, or reconcilement infrastructure with international transactions (where platforms and process differ).
Wells Fargo’s global locations will be able to exchange funds in expanded operating hours without limitations from traditional posting infrastructure or differences in infrastructure across the network. And final settlement will occur without the need for third-parties thus reducing transfer time and costs. Plus corporate clients will not have to change their payment processes, cash management responsibilities, or relationship management practices to benefit.
The pilot is planned for next year and is expected to complete US Dollars transfers initially with a goal to expand to multicurrency transfers and the entire global Wells Fargo branch network. And the internal DLT network is proprietary and will not be connected to any other digital cash solutions emerging in the financial services markets today.
