US Bank Becomes First Major Institution to Successfully Launch Stablecoin on Public Blockchain

US Bank has successfully completed its first live pilot of the USBDC stablecoin on the Stellar (XLM) blockchain, marking a significant milestone in the adoption of open rails by major financial institutions.

The bank chose to use the public Stellar network rather than creating an isolated private network, demonstrating that large amounts of capital can be transferred securely and efficiently over open rails.

According to U.S. Bank's head of digital assets, Jamie Walker, the platform is fully integrated into its internal risk management system, addressing regulatory concerns.

The USBDC stablecoin's code includes freezing and clawback functions, allowing the bank to immediately freeze or return funds in case of errors or financial intelligence authority alerts.

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