U.S. Bank Launches Stablecoin on Stellar Blockchain in Cross-Border Pilot

U.S. Bank has launched its proprietary U.S. dollar-backed stablecoin, USBDC, as part of a cross-border payment pilot on the Stellar blockchain.

The bank tested the full operational lifecycle of USBDC, including minting, payments, redemption, freezing, and clawback capabilities.

U.S. Bank's decision to use the Stellar blockchain was based on its near-instant settlement and sub-cent transaction costs, as well as its global reach.

The pilot project aimed to explore the potential of USBDC for cross-border treasury, liquidity management, collateral mobility, and faster institutional settlement.