US Bank Tests Own Stablecoin in Cross-Border Transaction

U.S. Bank has completed a live cross-border payment using its proprietary USBDC stablecoin, moving funds between its North American and European entities on the public Stellar blockchain. The pilot transaction, announced Wednesday, tested the full lifecycle of the dollar-backed token, including issuance, transfer, redemption, freezing, and clawback functions, while integrating with the bank's existing finance, risk, compliance, and operations systems. The fifth-largest commercial bank in the United States, U.S. Bank described the pilot as a validation of its internally developed Digital Asset Platform, which connects tokenized assets with its traditional banking infrastructure. The bank is exploring potential institutional applications for USBDC, such as cross-border treasury operations, liquidity management, and collateral movement onchain. This initiative builds on the bank's broader push into digital assets, which includes the establishment of a dedicated Digital Assets and Money Movement unit in October 2025.