Key Highlights
- Wells Fargo will launch tokenized deposits this fall, allowing businesses to move and settle money 24/7 within the regulated banking system.
- The service will first support U.S. dollar and British pound (USD/GBP) payments before expanding to more clients, countries, and currencies in 2027.
- Wells Fargo joins major financial firms like JPMorgan, Citigroup, and BlackRock in adopting blockchain technology for financial services.
Wells Fargo, a financial services company, is preparing to bring blockchain technology to traditional banking with the launch of tokenized deposits later this fall.
The new service, announced on Tuesday, will allow the bank’s corporate and commercial customers to move, schedule, and settle money at any time of the day, even outside normal banking hours.
The first phase will support payments between the U.S. dollar (USD) and British pound (GBP). Wells Fargo plans to expand the service to more clients, countries, and currencies throughout 2027.
How Wells Fargo is bringing payment on-chain
Wells Fargo said the service is designed to let businesses send and receive money 24 hours a day while keeping those transactions inside the regulated banking system. This would allow companies to complete payments without waiting for the next business day or regular market hours.
Unlike stablecoins or other digital assets, tokenized deposits are digital versions of money already held in a customer’s bank account. They represent real bank deposits and are backed by the money customers already have at the bank. By placing these deposits on blockchain technology, banks can move funds faster and make payments available around the clock while still following banking rules.
How the tokenized deposits will work
Wells Fargo said the service will run on its own blockchain platform. The platform already supports the bank’s in-house custodial wallets and is built to use its inter-chain connectivity technology in future services. This will allow the bank to add more features and connect with other blockchain networks as its digital payment system grows.
Mike Santomassimo, Wells Fargo’s Chief Financial Officer, said the launch is part of the bank’s broader plan to improve how customers make payments. “The planned launch of tokenized deposits is an important step forward as we expand our payment options, including on-chain solutions,” he said.
Wells Fargo joins the growing tokenization trend
The launch adds Wells Fargo to a growing list of major financial institutions adopting blockchain technology for payment and settlement services.
Last year in November, JPMorgan introduced its deposit token, JPM Coin, before expanding its blockchain-based payment plans. Citigroup has also entered the tokenization space by launching tokenized depository receipts and announcing plans to offer tokenized shares of private companies.
BlackRock, the world’s largest asset manager, has also expanded its blockchain activities. The company recently launched two tokenized money market products with blockchain infrastructure partners.
Separately, Wells Fargo is taking part in the Depository Trust & Clearing Corporation (DTCC) tokenization trial. The project is testing how blockchain technology can be used for stocks and U.S. Treasuries. The first stage of the trial was completed last month, while the formal tokenization program is expected to begin in October.
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