U.S. Bank conducted the first live pilot transaction using its own dollar-backed stablecoin, USBDC, for a cross-border transfer between its operations in North America and Europe.
U.S. Bank, one of the largest U.S. banks and a subsidiary of U.S. Bancorp, announced the launch of USBDC, its own U.S. dollar-backed stablecoin. The asset was successfully tested on the public Stellar blockchain network. During the test, the bank assessed its ability to move funds on-chain while maintaining operational controls through its existing financial accounting, risk management, and compliance systems.
USBDC became one of the first bank-issued stablecoins on a public blockchain network. U.S. Bank views the asset as a tool for 24/7 settlement and faster cross-border movement of funds.
As part of the pilot, the bank tested the full range of key stablecoin operations, including:
- token issuance;
- payment processing;
- redemption;
- freezing;
- forced asset recovery.
At the same time, U.S. Bank tested its Digital Asset Platform, which is used to issue, manage, and transfer tokenized assets and enables interoperability between traditional banking infrastructure and blockchain networks.
According to U.S. Bank Chairman and CEO Gunjan Kedia, the test results confirmed that blockchain technology could be used to accelerate cross-border settlement and the movement of funds between the bank’s operations.
The next stage of the pilot will explore institutional use cases for USBDC and the Digital Asset Platform where blockchain technology could shorten settlement times and improve transaction transparency. These include:
- liquidity management;
- collateral movement;
- cross-border treasury operations.
U.S. Bank Head of Digital Assets and Money Movement Jamie Walker said the project was part of the bank’s broader digital asset strategy. The bank’s priority remains implementing blockchain-based tools while maintaining existing security, reliability, and risk management requirements.
U.S. banks are actively exploring ways to integrate blockchain solutions into their operations. Earlier, a group of leading U.S. banks introduced a platform for tokenized deposits, while 39 U.S. banking associations formed the BankChain Alliance to develop nationwide blockchain infrastructure for the banking industry.
