U.S. Bank Pilots Stablecoin on Stellar Blockchain with Real-Time Cross-Border Settlements

U.S. Bank has successfully completed its first live pilot of its USBDC stablecoin using the Stellar (XLM) blockchain to transfer real money between its U.S. and European branches.

The bank's platform is fully integrated into its internal risk management system, addressing regulatory concerns that typically deter large banks from using open networks.

The USBDC stablecoin includes freezing and clawback functions, allowing the bank to immediately freeze or return funds if a payment is sent to the wrong address or draws financial intelligence authorities' attention.

Stellar Development Foundation CEO Denelle Dixon called the launch a major precedent for the industry, highlighting real institutional adoption of Stellar's speed and open architecture for secure and compliant cross-border settlements.