Wells Fargo looks to DLT for internal settlement service
(17 September 2019 – USA) Wells Fargo is preparing to pilot an internal settlement service running on a distributed ledger technology platform.
Wells Fargo Digital Cash will allow the bank to complete internal book transfers of cross-border payments within its global network using digitised cash — and for those international locations to exchange that digitised cash among themselves.
The pilot is expected to complete US dollar transfers initially, with the goal to expand to multicurrency transfers and the entire global Wells Fargo branch network.
Explaining the benefits of using DLT, the bank says Wells Fargo Digital Cash will help it achieve near real-time money movement without impact to the underlying account, transaction postings or reconcilement infrastructure with international transactions.
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.
In addition, corporate clients will not have to change their payment processes, cash management responsibilities or relationship management practices to benefit.
Lisa Frazier, head, innovation group, Wells Fargo, says: "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."
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