U.S. Bank partners with Stellar to test stablecoin
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Stablecoins have gotten a lot of attention but not a lot of tangible releases, at least among banks. U.S. Bank this week took an early-mover step toward issuing its own stablecoin. The bank has executed a test payment using USBDC, the institution's U.S. dollar-backed stablecoin, enabling a transfer between North America and Europe. It's a prelude to adding more uses for the stablecoin in the coming months. The Minneapolis-based U.S. bank is moving forward with USBDC as it also participates in Open USD, a pending stablecoin consortium that includes more than 140 banks, fintechs and crypto firms. It is also operating in an environment in which fintechs have dominated the stablecoin market and banks are playing catch up. U.S. Bank initially partnered with Stellar and PwC in late 2025 to test the stablecoin, which was minted, paid and redeemed inside the bank's existing risk, compliance and operations. The USBDC transaction used the Stellar blockchain, and was part of U.S. Bank's effort to demonstrate it could transfer digital assets on a blockchain while maintaining integration with the bank's core finance, risk, compliance and operations systems. By focusing on an international payment, U.S. Bank chose a common early use for stablecoins as a bridge between parties using different traditional currencies. In this case, the stablecoin acts as a faster and cheaper means to...
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