US Bank completes first live USBDC transaction on Stellar
The bank is exploring additional applications for USBDC, including liquidity management, collateral mobility, cross-border treasury operations and other institutional use cases.
US Bancorp, one of America’s largest banks, has launched its proprietary USBDC stablecoin and used it in a live pilot to execute a cross-border payment between the bank’s North American and European entities on the Stellar blockchain.
The US dollar-backed stablecoin is among the first bank-issued stablecoins to be deployed on a public blockchain and part of the Minneapolis-based lender’s effort to develop digital-asset and money-movement capabilities.
During the pilot, US Bank evaluated the stablecoin’s minting, redemption, freezing and clawback capabilities. The transaction also tested the bank’s Digital Asset Platform, an internally developed system designed to issue, manage and move tokenized assets across traditional banking infrastructure and blockchain networks.
The pilot showed that US Bank can transfer value on-chain while retaining its existing controls for finance, risk management, compliance and operations, the bank stated.
The news moving money, markets, and the world—before your day starts.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
The launch expands US Bank’s work with the Stellar Development Foundation as the bank examines how blockchain technology can support global payments and money movement.
US Bank first announced last November that it was testing a bank-issued stablecoin on Stellar, a public blockchain designed for financial services including payments and tokenized assets. The bank said Stellar’s near-instant settlement and low transaction costs make it suitable for regulated financial services.
The bank is now exploring more institutional applications for USBDC, including liquidity management, collateral mobility and cross-border treasury operations. US Bank said the stablecoin could also support 24/7 transaction capabilities as it continues developing its digital asset and money movement strategy.