U.S. Bank tests proprietary stablecoin in Stellar cross-border pilot

U.S. Bank has completed a live crossborder payment using its proprietary USBDC stablecoin on the Stellar blockchain. The transfer moved funds between the bank’s North American and European entities, according to the company. The pilot also tested USBDC features such as minting, redemption, freezing, and clawback, while connecting the token flow to U.S. Bank’s existing compliance, risk, and operations systems. The bank said the transaction validated its internal Digital Asset Platform, which links tokenized assets with traditional banking infrastructure. U.S. Bank said it is exploring additional uses for the stablecoin, including crossborder treasury operations, liquidity management, and onchain collateral movement. The project builds on the bank’s broader digital asset efforts, including the creation of a dedicated Digital Assets and Money Movement unit in 2025 and earlier testing of custom stablecoin issuance on Stellar.