American multinational financial services company Wells Fargo & Company has announced it plans to pilot an internal settlement service, Wells Fargo Digital Cash, which will run on Wells Fargo’s first distributed ledger technology (DLT) platform, iHodl Russia reports.
The new platform will reportedly allow Wells Fargo to complete internal book transfers of cross-border payments within its global network using digitized cash. The internal distributed network will be a reusable enterprise utility for Wells Fargo to create and deploy various DLT-based apps.
Lisa Frazier, Head of the Innovation Group at Wells Fargo says as a result of the increasing digitization of banking services globally, the company sees "a growing demand to further reduce friction regarding traditional borders."
"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," Frazier added.
It is expected that the platform will be launched in 2020. It will not be connected to other digital cash technologies emerging in the financial services markets today.
Back in 2016, the U.S. Federal CFPB regulators imposed the biggest fine in their history on Well Fargo, after the bank's employees secretly opened illegal accounts in customers' names to meet sales targets and get extra bonuses.
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