US Bank Joins Stablecoin Rush with Launch of USBDC

US Bank has introduced its own stablecoin, dubbed USBDC, which is backed by the US dollar. The bank announced that it had successfully used the stablecoin for a cross-border transaction between its entities in North America and Europe. This move marks one of the first instances of a bank-issued stablecoin being deployed on a public blockchain.

The pilot transaction utilized the Stellar blockchain, which demonstrated the bank's ability to transfer value on-chain while maintaining harmony with its core finance, risk, compliance, and operations infrastructure. The release also highlighted the validation of the bank's in-house digital asset platform, used to issue, manage, and move tokenized assets while connecting traditional banking infrastructure and blockchain networks.

The launch comes at a time when the stablecoin market is experiencing a period of flux. According to recent reports, 21 of the world's biggest banks have announced plans for a jointly backed stablecoin venture, while the Securities and Exchange Commission (SEC) prepares transfer-agent rules for a market that can be underpinned by blockchain technology.