Wells Fargo will create stablecoin for internal transactions

Wells Fargo will create stablecoin for internal transactions

Named Wells Fargo Digital Cash, the stablecoin will be launched by the financial giant Wells Fargo. The token will be pegged to the dollar

Wells Fargo will create stablecoin for internal transactions

By Editorial Staff

Another cryptocurrency is about to be released in the United States. Named Wells Fargo Digital Cash, the new stablecoin will be launched by the financial giant Wells Fargo. The token will be pegged to dollar and will run on the first blockchain platform of the company.

Initially, Wells’ stablecoin will be used in a pilot for internal transactions´settlement in the company’s business. The company also informed through a statement that the token will allow to settle international payments through its global network. The first test was completed between the U.S. and Canada and it was a success.

 “As a result of the growing digitization of banking services around the world, we see a growing demand to further reduce friction over traditional boundaries, and the current technology puts us in a strong position to do this”, said Lisa Frazier, head of the company’s Innovation Group.

Wells’ Stablecoin will have DLT technology

Wells Fargo further stated that stablecoin will be handled through distributed ledger technology (DLT). This will make it possible to perform transactions almost in real time, without impacting the underlying account, transaction postings or reconciliation infrastructure.

She also stated that the DLT is promising for a variety of use cases. The internal DLT network will be a reusable enterprise utility for Wells Fargo to create and deploy multiple technology-based applications.

 “We are excited to take this significant step in applying the technology to the bank in a practical and scalable way. Wells Fargo Digital Cash has the potential to allow Wells Fargo to remove barriers to real-time financial interactions across multiple accounts in various markets around the world”, he said.