U.S. Bank Tests Cross-Border Payment Pilot on Stellar Public Blockchain

U.S. Bank has successfully completed a live cross-border payment pilot using its proprietary U.S. dollar-backed stablecoin, USBDC. The pilot demonstrated that the lender can move its own token between bank entities on the Stellar public blockchain network while maintaining established financial controls.

The transaction involved moving value between U.S. Bank entities in North America and Europe on Stellar, but both ends remained within the bank's corporate structure. This limits what the result establishes, as it demonstrates an internal cross-border payment on Stellar but not settlement with an outside bank, merchant or retail customer.

U.S. Bank tested four key functions during the pilot: minting, payment redemption, freezing, and clawback. These functions cover the payment path and the issuer's ability to intervene in exceptional situations.

The test validated the connection between traditional banking infrastructure and blockchain networks, according to U.S. Bank. The bank used its internally developed Digital Asset Platform as the foundation for issuing, managing, and transferring the token.