US Bank Tests Blockchain-Based Stablecoin for Cross-Border Payments
US Bank has made significant strides in testing its own stablecoin for cross-border payments. The bank has completed a live transaction using USBDC, its proprietary US dollar-backed stablecoin, to transfer value between entities in North America and Europe on the Stellar public blockchain.
The pilot tested the full lifecycle of USBDC, including minting, payments, redemption, freezing, and clawback functionality through its internally developed Digital Asset Platform. This platform connects tokenized assets with existing finance, risk, compliance, and operational systems, addressing a central question surrounding institutional adoption of public blockchains.
US Bank's model could support 24/7 transactions while retaining established banking controls. The technology has potential applications beyond payments between bank entities, extending to cross-border treasury operations, liquidity management, and collateral mobility.
The pilot is part of a broader shift in the stablecoin market, with major international banks developing their own approaches to tokenized commercial bank money and stablecoins. Institutions including Bank of America, Citi, Goldman Sachs, and Wells Fargo are involved in plans for a dollar-pegged digital currency targeted for 2027.