Wells Fargo to Roll Out Tokenized Deposits for Corporate Clients — WSJ

By Gina HeebWells Fargo plans to launch tokenized deposits for corporate and commercial clients this fall, the latest sign that big banks are embracing the world of digital assets.The detailsThe fourth-largest U.S. bank by assets said clients will be able to transfer, program and settle funds around the clock through tokenized deposits, which are traditional funds represented as digital tokens on a blockchain.Wells Fargo said its tokenized deposits will initially cover U.S. dollars and British pounds for cross-border payments. The bank will expand them next year into more countries and currencies that will be determined by demand, Chief Financial Officer Mike Santomassimo said in an interview.The tokenized deposits will run on a proprietary blockchain platform, which gives the bank more control over its destiny, Santomassimo said.The contextFirms across Wall Street have increasingly adopted blockchain technology, from tokenized money-market funds to tokenized securities platforms. The technology is seen as a faster, more efficient way to settle transactions and move money.Big U.S. banks plan to launch a tokenized deposit network next year, the Journal previously reported. Wells Fargo said its tokenized deposits would be able to integrate with that network, as well as private networks.JPMorgan Chase and Citigroup have their own tokenized deposit products. Citi recently established a way for its wealthy and institutional clients to trade shares of private companies through a blockchain.Banks tend to favor tokenized deposits over stablecoins, which are digital tokens that are currently used to transfer money and have been at the center of a fight between banks and crypto firms.Write to Gina Heeb at [email protected]