Wells Fargo Plans 2027 Stablecoin Launch as Third-Quarter Earnings Top Year-Ago Results
Key Takeaways
- •Wells Fargo and about 20 other financial institutions, including Bank of America, Citi, Goldman Sachs, and European banks such as Deutsche Bank and UBS, plan to form a jointly owned company to issue a stablecoin starting with a US dollar token in the first half of 2027.
- •CEO Charlie Scharf said stablecoin use cases in the United States remain unclear, but the bank is building digital payment solutions to be prepared as potential opportunities unfold.
- •Wells Fargo launched tokenized deposits for corporate and commercial clients in September, beginning with a limited US dollar-to-British pound service built on Cosmos ledger technology, and plans to expand customers, countries, and currencies during 2027.
- •The bank is also part of a separate shared deposit-token network with JPMorgan Chase, Bank of America, and Citigroup that The Clearing House would operate, targeting the same first-half 2027 launch window.
- •Wells Fargo reported third-quarter net income of $5.95 billion, up from $5.59 billion a year earlier, with diluted earnings per share of $1.87 and revenue of $21.87 billion, a 2% increase.
Wells Fargo is preparing to issue a stablecoin with 20 other financial institutions in the first half of 2027, a plan moving forward even as Chief Executive Charlie Scharf says stablecoin use cases in the United States remain unclear. The update came alongside third-quarter results showing net income of $5.95 billion, up from $5.59 billion a year earlier.
The initiative is one of several digital-asset efforts underway at the bank, which launched tokenized deposits for corporate and commercial clients in September and is also part of a separate deposit-token network with other major banks. Read together, the projects show one of the largest US banks building parallel digital-payment tracks: one that keeps money inside the regulated banking system and another that would place a stablecoin under a jointly owned new company.
Scharf addressed the plans on the bank's earnings call on Oct. 13. He said Wells Fargo is building digital payment services while studying where stablecoins could help American customers.
"Use cases in the US for stablecoins remain unclear, but we're building solutions to be prepared as opportunities potentially unfold," Scharf said.
He added that the bank is accelerating investment in both traditional and digital payments for consumers and businesses.
Stablecoin Consortium Aims for First-Half 2027 Launch
Wells Fargo and its partners announced the venture on Sept. 1. The group expects to establish the new company in the second half of 2026, subject to closing conditions, making that step the first checkpoint for whether the 2027 launch timetable holds.
The company will begin with a US dollar token and may later add other Group of Seven currencies, with the euro as a priority. The planned service targets wholesale, institutional, and retail customers, including people making cross-border payments or settling digital asset trades.
The membership spans the United States, Europe, and other regions. It includes Bank of America, Citi, Goldman Sachs, Capital One, Fidelity Investments, and WisdomTree. European participants include Deutsche Bank, Santander, BBVA, Lloyds Banking Group, and UBS, while MU, Standard Bank, and Sirius International Holding represent other regions. The roster puts a broad swath of traditional finance, rather than crypto-native issuers, at the center of a regulated stablecoin build-out.
The group said the service would follow the GENIUS Act in the United States and, where applicable, the Markets in Crypto-Assets regulation in Europe — the federal framework for payment stablecoin issuers and the European Union's comprehensive crypto-asset rulebook, respectively. The company's name will be disclosed at a later date.
Tokenized Deposits and Third-Quarter Results
Scharf said Wells Fargo launched tokenized deposits in September for corporate and commercial clients. The bank expects the service to allow transfers between accounts and across borders at any time.
The rollout began with a limited US dollar-to-British pound exchange service for selected clients. Wells Fargo plans to add customers, countries, and currencies during 2027. The platform supports bank-held wallets and payment instructions that execute when set conditions are met.
In September, a Cosmos executive said Wells Fargo uses Cosmos ledger technology for the project.
Wells Fargo is also part of a separate shared deposit token network with JPMorgan Chase, Bank of America, and Citigroup. The Clearing House would run that system, which likewise targets the first half of 2027 — the same window in which the consortium stablecoin is scheduled to arrive.
Tokenized deposits are claims on funds held at commercial banks. They allow customers to use blockchain-based payment tools while keeping their money inside the banking system, unlike the consortium's planned stablecoin, which would be issued by the new joint company rather than by any single bank.
Wells Fargo reported net income of $5.95 billion for the quarter ended Sept. 30, up from $5.59 billion a year earlier. Diluted earnings per share rose to $1.87 from $1.66. Quarterly revenue reached $21.87 billion, a 2% increase from $21.44 billion in the same period of 2025.
Source: Blockonomi
