U.S. Bank takes next step towards launching its stablecoin with cross-border payment test
U.S. Bank has successfully tested a cross-border payment transaction using its proprietary stablecoin, USBDC, on the Stellar blockchain. This pilot marks a significant step in the bank's effort to modernize global cash management and treasury operations.
Why it matters
Demonstrates the growing institutional adoption of blockchain technology and stablecoins for traditional banking and cross-border settlements.
The Minneapolis-based lender completed a transaction with USBDC, its proprietary U.S. dollar-backed stablecoin, between U.S. Bank entities in North America and Europe, according to a Wednesday statement.
The move comes as stablecoins, or cryptocurrencies tied to fiat money like the U.S. dollar, become an increasingly common part of everyday finance. Once used mainly by crypto traders to move money between exchanges, dollar-pegged tokens are spreading into payments, remittances and treasury management, promising faster transfers and around-the-clock settlement.
The pilot tested minting and redeeming USBDC as well as freezing and clawing back tokens. It also validated the bank's internally developed Digital Asset Platform, which connects blockchain networks with its finance, compliance, risk and operations systems.
“This live pilot demonstrates our ability to accelerate global cash management and money movement capabilities," said Gunjan Kedia, chairman and CEO at U.S. Bank.
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