US Bank Pilots Stablecoin on Stellar Blockchain with Real-World Cross-Border Payment
US Bank has successfully completed its first live cross-border transaction using USBDC, its proprietary dollar-backed stablecoin on the Stellar (XLM) blockchain. The pilot marks one of the first instances of a bank-issued stablecoin being deployed on a public blockchain for real-world use.
The transaction was conducted through the bank's internally developed Digital Asset Platform, which integrates with its existing finance, risk, compliance, and operations systems. By testing minting, payment, redemption, freezing, and clawback capabilities, the pilot explored the full lifecycle of a regulated digital asset.
Stellar's protocol natively supports critical features for regulated financial institutions, including the ability to freeze assets, claw back funds, and enforce authorization requirements. These built-in controls eliminate the need for banks to develop and manage custom compliance tools, a significant barrier for institutional adoption of public blockchains.