US Bank Tests Blockchain Wire Transfer with Undo Button
U.S. Bank has made a significant move in the world of cryptocurrency and blockchain technology by sending real dollars from North America to Europe on a public chain using Stellar's token, XLM.
The bank chose to use a token called USBDC, which is not available for customers to buy, and used it to pay itself. This was done as part of a test, with the bank describing it as a 'launch' in their statement.
Stellar's technology allows the issuer of a token to cut off an account and destroy coins sitting in someone else's wallet, while also allowing them to freeze or take back the tokens. U.S. Bank successfully tested all four functions using USBDC.
The bank emphasized that this is not a rival to existing dollar coins used by traders, but rather a wire transfer with an undo button. They claim it will accelerate global cash management and money movement capabilities.