Wells Fargo to Pilot Internal Settlement Service Using Distributed Ledger Technology
September 17 2019 - 7:00AM
Business Wire
Wells Fargo Digital Cash will drive operational efficiencies,
including longer operating windows and real-time processing
Wells Fargo & Company (NYSE: WFC) today announced plans to
pilot an internal settlement service, Wells Fargo Digital Cash,
which will run on Wells Fargo’s first distributed ledger technology
(DLT) platform.
Wells Fargo Digital Cash will 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. To
date, Wells Fargo has successfully proven the concept of moving
value between the U.S. and Canada. The internal DLT network will 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, 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 provides a permanent, highly secure and trusted record of
transactions. 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 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. Final settlement will occur
without the need for third parties, reducing transfer time and
costs. Corporate clients will not have to change their payment
processes, cash management responsibilities or relationship
management practices to benefit.
The pilot, planned for 2020, is expected to complete USD
transfers initially, with a goal to expand to multicurrency
transfers and the entire global Wells Fargo branch network. The
internal DLT network is proprietary and will not be connected to
any other digital cash solutions emerging in the financial services
markets today.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
investment and mortgage products and services, as well as consumer
and commercial finance, through 7,600 locations, more than 13,000
ATMs, the internet (wellsfargo.com) and mobile banking, and has
offices in 32 countries and territories to support customers who
conduct business in the global economy. With approximately 263,000
team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 29 on
Fortune’s 2019 rankings of America’s largest corporations. News,
insights and perspectives from Wells Fargo are also available at
Wells Fargo Stories.
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version on businesswire.com: https://www.businesswire.com/news/home/20190917005340/en/
Media Roger Cabrera, 303/513-5067
roger.cabrera@wellsfargo.com @rogercabreraWF
(or)
Investor Relations John Campbell, 415/396-0523
john.m.campbell@wellsfargo.com
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