US Bank Pilots Stablecoin for Cross-Border Payments on Stellar Blockchain
US Bank has successfully completed a live pilot of its proprietary USBDC stablecoin on the Stellar blockchain. The test, conducted on September 9, demonstrated real-time cross-border payments between the bank's North American and European divisions. This makes US Bank one of the first major American financial institutions to issue a dollar-backed stablecoin on a public blockchain in a live operational setting.
The pilot tested the full lifecycle of the USBDC stablecoin, including minting, payment execution, redemption, freezing, and clawback functionality. The test integrated seamlessly with the bank's existing systems for risk management, compliance, finance, and operations.
US Bank's CEO Gunjan Kedia emphasized that this pilot plays an essential role in accelerating global cash management. Jamie Walker, Head of Digital Assets and Money Movement, highlighted the focus on addressing real client challenges with advanced bank-grade controls.