U.S. Bank Pioneers Cross-Border Settlements on Stellar Blockchain

U.S. Bank has successfully completed its first live pilot of its USBDC stablecoin on the public Stellar (XLM) blockchain, moving real money between its U.S. and European branches.

The bank's head of digital assets, Jamie Walker, explained that its platform is fully integrated into its internal risk management system, addressing regulatory concerns by allowing freezing and clawback functions if a payment goes to the wrong address or draws attention from financial intelligence authorities.

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

The bank's U.S. CEO Gunjan Kedia confirmed that the pilot had been successful, stating that the technology will allow it to move capital between continents around the clock at almost no cost, bypassing traditional intermediaries and lengthy interbank reconciliations.