TL;DR
- U.S. Bank completed a live transaction with its USBDC stablecoin between entities in North America and Europe over the Stellar network.
- The pilot validated token minting, redemption, and recovery functions, as well as the bank’s internal digital asset platform.
- The bank is exploring uses of USBDC in cross-border treasury, liquidity management, and collateral movement. No commercial launch date has been set.
U.S. Bank, the fifth largest commercial bank in the United States, announced that it completed a live transaction using its own stablecoin, called USBDC and backed by the U.S. dollar, between bank entities in North America and Europe. The operation ran on the Stellar blockchain and was confirmed through an official press release.
The pilot included the minting and redemption of USBDC tokens, as well as the execution of freezing and fund recovery mechanisms. It also validated the Digital Asset Platform, developed internally by the bank, which connects blockchain networks with its finance, regulatory compliance, risk management, and operations systems.
USBDC: The Answer to a Market in Transformation
The test seeks to capitalize on the rapid expansion of digital asset payments in the traditional banking sector. Stablecoins, historically associated with transactions between cryptocurrency exchanges, are gaining ground as tools in international payments, remittances, and corporate treasury management, thanks to their ability to offer instant settlements available 24 hours a day.
Institutions Penetrate the Stablecoin Market
Last week, 21 financial institutions —including Bank of America, Citi, Goldman Sachs, and UBS— announced the creation of a joint venture to issue stablecoins aimed at payments and digital asset transactions. The group plans to launch a dollar-backed token in the first half of 2027, with plans to expand to other currencies. In May, a consortium of European banks founded Qivalis to issue a stablecoin backed by the euro.
U.S. Bank indicated that it is evaluating applying USBDC to cross-border treasury operations, liquidity management, and collateral transfers. Gunjan Kedia, president and CEO of the institution, noted that the pilot demonstrates the bank’s ability to accelerate cash management. The bank did not specify when the token will be available to customers, nor did it offer a timeline for its broader commercial deployment.
