The US-based banking giant Wells Fargo announced to launch its stablecoin to make cross border settlements. The stablecoin would run on the company’s blockchain. Executive, Lisa Frazier claimed that the bank’s blockchain for internal cross border money transfers is faster and cheaper than SWIFT.
Earlier this week US-based Financial giant, Wells Fargo announced that they are developing a dollar-linked that will run on the company’s blockchain. The firm revealed in the press release that the stablecoin would be used to make cross border settlements.
Banking giant Wells Fargo claimed that its blockchain for internal cross-border money transfer is faster and efficient than SWIFT. The bank also pointed out that as a result of increasing digitization of banking services globally, there is a growing demand to reduce friction regarding traditional borders further.
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 material and scalable way.”
She further added that Wells Fargo Digital Cash has the potential to enable the bank to remove barriers to real-time financial interactions across multiple accounts in multiple marketplaces around the world. The pilot project is planned for 2020. Initially, it is expected to complete USD transfers and then expands to multicurrency transfers.
Lisa Frazier informed that today, for internal book transfers between branches in different countries, the bank needs to use SWIFT. And this process takes a lot of time and energy. Earlier JP Morgan bank also launched its stablecoin to make cross border settlements easy and faster and so far 344 banks all over the globe are using its blockchain Quorum.
Let us know in comments what are your views on the bank using stablecoin to make international settlements.