Wells Fargo & Company WFC is launching pilot digital cash transfer program that will use its distributed ledger technology (DLT) platform to settle cross-border money transfers internally across its global network using digitized cash.
The pilot program is expected to be available in 2020. It will help complete dollar transfers initially and later expand to multicurrency transfers and gradually cover its entire global branch network.
Wells Fargo has no plans to connect its DLT network with any other digital cash solutions in the financial services markets.
The company is said to have successfully tested the concept of money transfers between the United States and Canada.
Wells Fargo is introducing the service after acknowledging the importance of digitization of banking services in recent times. Also, it claims that DLT network will be a reusable enterprise utility through which it can build and deploy multiple DLT-based applications.
Lisa Frazier, head of the Innovation Group at Wells Fargo said, “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.”
The company expects the platform to achieve near real-time money movement without impacting the underlying account, transaction postings or reconcilement infrastructure with international transactions.
In six months’ time, shares of Wells Fargo have lost 5.1% against 3.4% growth recorded by the industry.
Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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