After JPMorgan, one more banking giant has announced its plans to launch a cryptocurrency. Wells Fargo said in a press release yesterday that it’ll launch its own stablecoin called Fargo Digital Cash next year to facilitate remittances through a new DLT-based payment network.
Like most of the other stablecoins, Fargo Digital Cash will be pegged to the dollar, and it will undergo an internal pilot before being launched for the public.
The new coin and its payment system will allow Wells Fargo to process money transfers at a much faster rate by eliminating intermediaries. Moreover, the clients of the bank won’t have to make any changes to their way of interacting with the bank as the new system and its stablecoin are not client-facing. Both these things will work in the background.
Wells Fargo said that it will begin an internal pilot of Fargo Digital Cash next year. However, it has already tested both the network and the coin for some remittances between Canada and United States. The broader roll-out may be expected next year.
Coindesk contacted Wells Fargo to extract some more information regarding this payment network and stablecoin. In response, the bank said that its network is built on the top of R3’s Corda Enterprise platform. Corda Enterprise is the paid version of Corda blockchain for enterprises.
Wells Fargo is the world’s 4th largest bank by marketcap. In the US, it’s the 3rd largest bank by assets. Therefore, it was natural for it to bring its own stablecoin after its rival JPMorgan announced JPM Coin. It doesn’t mean that they’re going to change their stance on Bitcoin and other cryptocurrencies anytime soon.