Wells Fargo prepares for stablecoins as CEO questions US use cases

Wells Fargo has outlined plans to issue stablecoins with 20 other financial institutions in the first half of 2027, while CEO Charlie Scharf has said their use cases in the United States remain unclear.

Summary

• 21 financial institutions are establishing a stablecoin company, with a dollar token planned first.
• Scharf said Wells Fargo launched tokenized deposits for corporate and commercial clients in September.
• The consortium plans to support cross-border payments and digital asset settlements across several customer groups.
• Wells Fargo reported third-quarter net income of $5.95 billion, compared with $5.59 billion a year earlier.

Wells Fargo CEO Charlie Scharf said during the bank's Oct. 13 earnings call that it was building digital payment services while assessing where stablecoins could serve American customers. Alongside the proposed stablecoin business, he confirmed that the bank had already launched tokenized deposits on its own blockchain platform.

"Use cases in the US for stablecoins remain unclear, but we're building solutions to be prepared as opportunities potentially unfold," Scharf said.

In describing the bank's spending priorities, Scharf said Wells Fargo was accelerating investment in traditional and digital payments for consumers and businesses. He identified corporate money transfers as a use case for tokenized deposits, saying the platform's expansion would let clients move funds between accounts and across borders at any time.

Wells Fargo stablecoin venture targets a 2027 launch

Under a Sept. 1 announcement, Wells Fargo and its partners committed to establishing the new company in the second half of 2026, subject to closing conditions. The group set the first half of 2027 as its target for bringing the stablecoin product to market.

According to the announcement, the company will begin with a U.S. dollar-denominated token before considering other Group of Seven currencies, with the euro a priority. The participants intend to serve wholesale, institutional and retail customers, including users making cross-border payments or settling digital asset transactions.

The consortium's membership includes Bank of America, Citi, Goldman Sachs, Capital One, Fidelity Investments and WisdomTree, the release said. European participants include Deutsche Bank, Santander, BBVA, Lloyds Banking Group and UBS, while MUFG, Standard Bank and Sirius International Holding represent other regions.

For its U.S. and European operations, the group said the proposed service would comply with the GENIUS Act and the Markets in Crypto-Assets regulation, where applicable. The announcement also said the company's name would be released later.

Tokenized deposits have moved from rollout plans to launch

On the earnings call, Scharf said Wells Fargo introduced tokenized deposits in September for corporate and commercial customers. He said the bank expected the service to support round-the-clock transfers as it expanded the platform.

As crypto.news previously reported on Aug. 4, Wells Fargo's tokenized deposit rollout plans began with a limited U.S. dollar-to-British pound exchange service for selected clients. The bank said it would add customers, countries, and currencies during 2027, with further market choices based on customer demand.

According to that report, the platform supports bank-held wallets and payment instructions that can run when specified conditions are met. Wells Fargo also said future services could use technology connecting its system with other blockchain networks.

For American companies conducting business in Britain, the announced initial service covers transfers between dollars and pounds. In its August description, the bank said participating businesses would be able to transfer, program and settle funds around the clock within its banking framework.

In September, Cosmos Chief Commercial Officer Eran Barak identified Wells Fargo as a bank using Cosmos ledger technology for its cross-border deposit project. The Sept. 10 report detailed a 17-company provider network covering custody, compliance, wallet controls, security and connections to existing banking systems.

Barak said financial institutions would select providers and sign separate contracts rather than receive every service under one agreement. He also said banks would retain responsibility for compliance decisions, even when outside companies supplied transaction screening or other supporting tools.

A separate US network would connect deposits across banks

In July, Wells Fargo also appeared among four major American banks developing a shared deposit token network with JPMorgan Chase, Bank of America and Citigroup. The July 28 report said The Clearing House would operate the proposed system, targeting availability in the first half of 2027.

According to that report, multinational businesses would receive initial access to services covering corporate cash management, automated payments and cross-border transfers. The proposed network would connect tokenized deposits issued by different banks with existing payment systems.

The Clearing House project also had support from more than a dozen other institutions, including BNY, HSBC, PNC, Santander, TD Bank, Truist and U.S. Bank, the report said. Its development included choosing technology and agreeing on common operating standards.

As described in the July coverage, tokenized deposits represent claims against funds held at commercial banks. The participating institutions' proposal would allow customers to use blockchain payment functions while keeping their money within the banking system.

Wells Fargo reports higher third-quarter profit

In its third-quarter financial results, Wells Fargo reported net income of $5.95 billion for the three months ended Sept. 30, up from $5.59 billion a year earlier. Diluted earnings per share increased to $1.87 from $1.66, according to its earnings materials.

The bank's financial supplement showed quarterly revenue of $21.87 billion, compared with $21.44 billion in the same period of 2025, an increase of 2%.