Wells Fargo to enter the crypto space with its own stablecoin

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Wells Fargo, one of the biggest banks in the world and a major financial player in the United States, revealed its ongoing efforts of launching a blockchain-based USD-pegged stablecoin named Wells Fargo Digital Cash in 2020.
The banking titan took the decision to integrate Distributed Ledger Technology into its internal processes to enhance the financial mechanisms that are part of its global Wells Fargo network which includes corporate payments and cross-border transfers.
Wells Fargo has become known in the financial space for a series of banking investment services and mortgage products that serve clients from all over the world with a total assets value of almost $2 trillion.
Though it may seem an unexpected step from an established US banking institution to enter the blockchain space, we have to emphasize that a few months ago JPMorgan produced the first shockwave in the traditional financial world by announcing the launch of their own cryptocurrency. The unpredicted moves from the two financial giants are so much more surprising as both banks expressed many times in the past their doubts and reserves regarding Bitcoin and cryptocurrencies.
The new blockchain-based platform from Wells Fargo is intended to improve transactional activities of the bank by taking advantage of the new US-pegged stablecoin. Initially, the new stablecoin will be employed for internal purposes and settlement needs of the bank and its corporate clients, so average users won’t be able to access the new digital currency or find it at work in financial markets.
Thus, for the foreseeable future, the new USD-pegged stablecoin from Wells Fargo will be used for cross-border payments inside the internal network of the banking titan and will act as a platform holding a record of all financial transactions. With Wells Fargo Digital Cash in place, the settlements will occur faster and at a reduced cost without any 3rd party intermediaries while obstacles to real-time transactions that take place in various markets of the world will be removed.
Though Wells Fargo still denies its customers from running crypto to fiat transactions on their accounts, the American bank clearly can’t block the innovative blockchain technology from entering the traditional financial space.

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