US Bancorp has launched its proprietary USBDC stablecoin and used it in a live pilot to execute a cross-border payment between the bank’s North American and European entities on the Stellar blockchain.
The US dollar-backed stablecoin is among the first bank-issued stablecoins to be deployed on a public blockchain. The pilot showed that US Bank can transfer value on-chain while retaining its existing controls for finance, risk management, compliance and operations.
During the pilot, US Bank evaluated the stablecoin’s minting, redemption, freezing and clawback capabilities. The transaction also tested the bank’s Digital Asset Platform, an internally developed system designed to issue, manage and move tokenized assets across traditional banking infrastructure and blockchain networks.
The launch expands US Bank’s work with the Stellar Development Foundation as the bank examines how blockchain technology can support global payments and money movement. US Bank said Stellar’s near-instant settlement and low transaction costs make it suitable for regulated financial services.
The bank is now exploring broader institutional applications for USBDC, including liquidity management, collateral mobility and cross-border treasury operations. US Bank said the stablecoin could also support 24/7 transaction capabilities as it continues developing its digital asset and money movement strategy.
