Wells Fargo, a Fortune 500 company providing financial services, has been the latest institution to express potential interest in blockchain and cryptocurrencies. As announced earlier, the organization revealed its plans to test an internal settlement service, Well Fargo Digital Cash, which would operate on its own Distributer Ledger.
According to recent reports, Liza Frazier, Head of the Innovation Group at Wells Fargo, has claimed that its impending blockchain would be highly efficient and outperform SWIFT, a platform which provides services to over 11,000 organizations by facilitating internal cross-border payments.
The firm also spoke of the launch of a U.S dollar-linked stablecoin which would be using R3’s Corda Enterprise software to maintain internal book transfers, while overseeing funds movement from the payer’s account to the receiver’s account.
Speaking about the DLT platform, Frazier said,
“When we move money across the world and we need to exchange currencies, we have to go through third parties such as SWIFT and other banks. That’s a long process and every time there’s a connection with external parties, it takes time and energy and effort.
She added that the blockchain project would go live next year after the completion of a successful “proof-of-concept” which would enable institutions to exchange the virtual asset among each other. In similar fashion to JPM Coin, the stablecoin will be pegged 1:1 to the fiat currency. She said