U.S. Bank Tests Blockchain-Based Stablecoin for Cross-Border Payments

U.S. Bank has successfully piloted its proprietary U.S. dollar-backed stablecoin, USBDC, on a public blockchain. The pilot tested various functions of the stablecoin, including minting, transferring, redeeming, freezing, and clawing back.

The live cross-border payment used the Stellar blockchain to move funds between U.S. Bank entities in North America and Europe while remaining connected to the bank's existing finance, risk, compliance, and operations systems.

U.S. Bank is exploring additional applications for USBDC, including liquidity management, collateral mobility, and cross-border treasury operations.