U.S. Bank, the fifth-largest commercial bank in the United States by assets, has completed a live cross-border payment using its proprietary USBDC stablecoin on the Stellar blockchain. The pilot transaction moved funds between U.S. Bank entities in North America and Europe, with the stablecoin issued and transferred via the public Stellar network. The test also validated USBDC’s minting, redemption, freezing, and clawback functions while ensuring seamless integration with the bank’s existing risk, compliance, and operational systems.
The successful execution underscored U.S. Bank’s internally developed Digital Asset Platform, which bridges tokenized assets with its traditional banking infrastructure. Beyond cross-border payments, the bank is exploring additional applications, including cross-border treasury operations, liquidity management, and onchain collateral movement.
This pilot follows U.S. Bank’s broader expansion into digital assets. In October 2025, the institution established a dedicated Digital Assets and Money Movement unit to focus on stablecoin issuance, crypto custody, asset tokenization, and digital money movement. The bank has been experimenting with custom stablecoin issuance on Stellar since at least November 2025, collaborating with PwC and the Stellar Development Foundation.
The move aligns with a broader industry trend. In September, 21 major financial institutions—including Bank of America, Citi, Goldman Sachs, Deutsche Bank, and UBS—announced plans to form a company to issue a US dollar-denominated stablecoin, targeting wholesale, institutional, and retail markets. The token is expected to launch in the first half of 2027, with potential expansion to other G7 currencies. Meanwhile, Fidelity introduced its Fidelity Digital Dollar (FIDD) in February, available to retail and institutional investors, with approximately $50 million in circulation at the time of its launch.
U.S. Bank’s initiative reflects a strategic shift among banks toward stablecoin adoption, contrasting with regulatory resistance to yield-bearing stablecoins and crypto platforms.
