The offering is set to run on the bank's proprietary blockchain network and support interoperability across other chains, extending blockchain use in corporate payments, treasury management and interbank settlement.
Wells Fargo plans to launch a tokenized deposits service for corporate clients, marking a further step in applying blockchain technology within the traditional banking system. The bank said the system will run on its self-developed blockchain network and will support interoperability (ability to work across networks) with other blockchains. Tokenized deposits are bank deposits represented in digital form on a blockchain, allowing funds to move more quickly and transparently on-chain while remaining backed by the bank deposit system. The move signals that large banks are accelerating investment in blockchain infrastructure and testing on-chain finance use cases in corporate payments, cash management and settlement between institutions, the Wall Street Journal reported.