Wells Fargo is ready to embrace stablecoins, CEO questions the practical applications of these curre

Wells Fargo is collaborating with 20 financial institutions to launch stablecoins in the first half of 2027. The CEO stated that the application scenarios for stablecoins in the U.S. market are still unclear.

Twenty-one financial institutions are forming a company dedicated to developing stablecoins, with plans to introduce tokens denominated in US dollars as part of their initial offerings. Charlie Scharf, CEO of Wells Fargo, mentioned that the bank launched tokenized deposit services for business and corporate clients in September. This alliance aims to support cross-border payments and digital asset settlement for various customer groups.

Wells Fargo’s net profit in the third quarter was $5.95 billion, up from $5.59 billion in the same period last year.

Well-planned strategies: developing solutions based on evaluation.

During the earnings call on October 13, Wells Fargo CEO Charlie Scharf said that the bank is developing digital payment services and evaluating how stablecoins can serve U.S. customers. He confirmed that, in addition to the proposed stablecoin initiative, the bank has already introduced tokenized deposits on its own blockchain platform.

“The use cases for stablecoins in the U.S. remain unclear, but we need to develop solutions to be prepared when opportunities arise,” said Scharf.

When describing the bank’s expenditure priorities, Scharf noted that Wells Fargo is accelerating its investment in traditional and digital payments for consumers and businesses. He identified corporate fund transfers as a potential use case for tokenized deposits, and mentioned that the platform’s expansion will enable customers to transfer funds between different accounts and across borders at any time.

Consortium structure and compliance commitments

According to the announcement made on September 1st, Wells Fargo and its partners have committed to establishing a new company in the second half of 2026, provided that certain conditions are met. The group has set the first half of 2027 as the target date for launching stablecoin products in the market.

The announcement states that the company will start with tokens denominated in US dollars, and later consider using other currencies from the G7 countries, with the euro being the preferred option. The service is intended to serve wholesale, institutional, and retail customers, including those who need to conduct cross-border payments or settle digital asset transactions.

It is reported that the members of this consortium include Bank of America, Citigroup, Goldman Sachs, First Capital, Fidelity Investments, and WisdomTree. European participants include Deutsche Bank, Santander Bank, BBVA, Lloyds Banking Group, and UBS. Mubaseka Financial Group (MUFG), Standard Bank, and Sirius International Holding represent regions outside of Europe.

Regarding its operations in the United States and Europe, the group stated that the proposed services will comply with the GENIUS Act and the Cryptocurrency Market Regulations (MiCA, if applicable). The announcement also indicates that the company name will be announced later.

From planning to implementation: tokenized deposits are now available

During the earnings call, Scharf mentioned that Wells Fargo launched tokenized deposits for business and corporate clients in September. He said that as the platform expands, this service is expected to support round-the-clock transfers.

Previous reports indicated that Wells Fargo’s token-based deposit promotion initiative began with offering limited US dollar-to-pound exchange services to selected customers. The bank stated that it plans to expand the scope of services to include more countries and currencies by 2027, with further market selection based on customer needs.

It is reported that the platform supports wallets and payment instructions held by banks, which can be executed under certain conditions. Wells Fargo also mentioned that future services may utilize technology to connect its systems with other blockchain networks.

For American companies operating in the UK, the initial services offered include transfers between US dollars and pounds. In an August description, the bank mentioned that participating businesses could transfer, program, and settle funds around the clock within the bank’s framework.

In September, Eran Barak, CEO of Cosmos, listed Wells Fargo as one of the banks using Cosmos blockchain technology for cross-border deposits. A report dated September 10 detailed a network of 17 company providers, including those specializing in custody, compliance, wallet management, security, and integration with existing banking systems.

Barak said that financial institutions would choose providers and sign separate contracts, rather than receiving all services under one agreement. He also noted that even if external companies provide transaction screening or other support tools, the bank retains responsibility for making compliance decisions.

Independent network: connecting various bank deposits

In July, Wells Fargo was among four major American banks working alongside JPMorgan Chase, Bank of America, and Citigroup to develop ashared deposit token networkAccording to reports dated July 28th, The Clearing House will operate the proposed system, with the goal of making it available in the first half of 2027.

According to these reports, multinational companies will have initial access to this service, which includes features such as corporate cash management, automated payments, and cross-border transfers. The proposed network will connect tokens representing deposits issued by various banks through existing payment systems.

It is reported that The Clearing House project has received support from more than ten institutions, including BNY Mellon Bank, HSBC, PNC Bank, Santander Bank, TD Bank, Truist, and Bank of America. The development process involves selecting technology and agreeing on common operational standards.

As described in the July reports, tokenized deposits represent claims against the funds held by commercial banks. The participating institutions’ proposals allow customers to keep their funds within the banking system while using blockchain-based payment functions.

Performance highlights: Profit growth in the third quarter

In the financial results for the third quarter, Wells Fargo reported a net profit of $5.95 billion for the three months ending September 30th, which is higher than the $5.59 billion in the same period last year. According to its financial statements, earnings per share increased from $1.66 to $1.87.

The bank’s financial data shows that quarterly revenue reached $21.87 billion, an increase of 2% compared to the same period in 2025.