US Bancorp, a Minneapolis-based financial institution, is testing its own stablecoin on Stellar, a public blockchain focused on facilitating financial transactions and asset tokenization with built-in compliance tools.

The bank selected Stellar for its regulatory-aligned capabilities, including asset freezing and transaction management features that support banking compliance requirements.

US Bancorp has established a digital assets division focused on developing stablecoin issuance and cryptocurrency custody products as part of its expansion into digital assets.

The testing positions US Bancorp among major banks exploring digital asset technologies, with Stellar’s compliance tools serving as a key factor in the blockchain selection for secure financial transactions.