US Bank Takes Step Forward with Stablecoin Test
U.S. Bank has taken a significant step in its digital asset strategy by successfully testing its stablecoin, USBDC. The bank partnered with Stellar to test the U.S.-dollar-backed stablecoin and processed a payment between North America and Europe.
The transaction used the Stellar blockchain and was part of U.S. Bank's effort to demonstrate that it can transfer digital assets on a blockchain while maintaining integration with its core finance, risk, compliance, and operations systems.
U.S. Bank is exploring other uses for USBDC beyond cross-border payments, including enhanced liquidity management, collateral mobility, and cross-border treasury operations.
The bank's head of digital assets and money movement, Jamie Walker, said in a release that the pilot is 'another step forward' in U.S. Bank's broader digital asset strategy, which includes providing custody services for Anchorage Digital Bank's stablecoin platform and offering bitcoin custody services and a cryptocurrency ETF.
U.S. Bank is also participating in the Open USD consortium, which includes several major banks and financial institutions, and will continue to collaborate with third-party stablecoin issuers where aligned to client needs and expectations.