US Bank Unveils Blockchain-Backed Dollar with Kill Switch
US Bank has successfully sent dollars from North America to Europe on a public blockchain. However, unlike traditional blockchain transactions, this payment had an 'undo' button, courtesy of a custom token called USBDC. The bank claims it's just a test, but with its own stablecoin.
USBDC is issued on the Stellar blockchain and allows US Bank to freeze or destroy tokens held by others, effectively breaking one of crypto's core promises: that transactions are irreversible. This feature was intentionally designed for control, giving the bank flexibility in managing payments.
The bank's announcement highlights its focus on delivering solutions that meet real client needs while maintaining safety, security, and reliability. Gunjan Kedia, chairman and CEO at US Bank, sees this pilot as a demonstration of the bank's ability to accelerate global cash management and money movement capabilities.