U.S. Bank Completes Stablecoin Pilot on Stellar Blockchain
U.S. Bank has completed the first live pilot of its USBDC stablecoin, transferring real funds between its U.S. and European branches through the public Stellar blockchain, according to statements from the bank and Stellar Development Foundation.
The pilot marks a test of whether a major regulated financial institution can use a public blockchain for internal cross-border settlement while maintaining controls required for financial risk management and regulatory compliance.
Rather than deploying USBDC on a separate private network, U.S. Bank used Stellar’s public infrastructure to move capital between its operations in different regions.
U.S. Bank Uses Stellar for Internal Stablecoin Settlement
Large financial institutions have generally approached public blockchains cautiously because of regulatory, security and operational concerns. U.S. Bank sought to address those issues by integrating its blockchain-based payment system with the bank’s existing risk management framework.
Jamie Walker, U.S. Bank’s head of digital assets, said the platform is fully integrated into the institution’s internal risk controls.
USBDC also includes functions that allow the bank to freeze or claw back funds. Those controls are designed to provide a mechanism for responding when funds are sent to an incorrect address or when a transaction attracts the attention of financial intelligence authorities.
The ability to intervene in transactions is particularly relevant to the bank’s decision to use a public blockchain while retaining control over its internal settlement operations.
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| Source: Xpost |
U.S. Bank CEO Gunjan Kedia also confirmed that the pilot was successful. She said the technology could eventually allow the bank to move capital between continents around the clock at almost no cost, while reducing reliance on traditional intermediaries and lengthy interbank reconciliation processes.
For now, however, USBDC will remain a closed system. The stablecoin is intended initially for U.S. Bank’s internal settlements and treasury operations rather than general public use.
Why U.S. Bank Chose Stellar
Stellar was selected in part because the network already provides infrastructure for digital assets and stablecoins.
Data cited from RWA.xyz shows that Stellar’s ecosystem holds $3.32 billion in real-world assets. The network is also associated with retail use of USDC, which has 685,000 holders, although U.S. Bank’s implementation follows a different institutional model.
The bank’s approach is designed for a limited number of wallets controlled by its own divisions rather than a broad consumer user base. Those wallets could nevertheless process billions of dollars in transactions as the system develops.
The model resembles other institutional applications of blockchain-based assets, including projects associated with Spiko and Figure’s YLDS token, where blockchain infrastructure is used primarily for financial-market operations rather than mass-market payments.
U.S. Bank Moves Ahead of Broader Bank Tokenization Plans
The pilot also places U.S. Bank among financial institutions experimenting with blockchain-based settlement before broader industry initiatives are fully operational.
The source material contrasts the bank’s progress with a planned interbank token project involving a consortium of roughly two dozen major banks, including Goldman Sachs. That group is targeting a shared interbank token by 2027.
U.S. Bank, the fifth-largest U.S. bank, has already conducted a live test using a public blockchain through its USBDC system.
The pilot does not mean USBDC is being opened to customers or that the bank has fully transitioned its settlement operations to Stellar. The initial system remains restricted to internal settlement and treasury functions, with the pilot demonstrating how public blockchain infrastructure can be incorporated into a controlled banking environment.
Source: u.today
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.