U.S. Bank Completes Live USBDC Pilot on Stellar U.S. Bank, the fifth-largest commercial lender in the United States, completed a live cross-border payment using its dollar-backed $USBDC stabl
U.S. Bank, the fifth-largest commercial lender in the United States, completed a live cross-border payment using its dollar-backed $USBDC stablecoin on the Stellar blockchain.The test, carried out on September 9, makes U.S. Bank one of the first major American financial institutions to run a bank-issued, dollar-backed stablecoin on a public blockchain in a live operational setting.
The transaction facilitated a cross-border payment between the bank's entities in North America and Europe.The pilot tested the full lifecycle of the stablecoin: minting, payment execution, redemption, freezing, and clawback functionality.It also validated the bank's internally developed Digital Asset Platform, which connects blockchain networks with its finance, compliance, risk, and operations systems.
"This live pilot demonstrates our ability to accelerate global cash management and money movement capabilities," said Gunjan Kedia, chairman and CEO at U.S. Bank.
The groundwork began in October 2025, when the bank created a dedicated Digital Assets and Money Movement organization aimed at enhancing its involvement in stablecoin issuance, digital asset custody, and tokenization of money.A November 2025 collaboration with the Stellar Development Foundation and PwC followed, laying the technical foundation for the September 2026 live pilot.
By selecting a public blockchain rather than relying exclusively on a private or permissioned ledger, U.S. Bank is testing whether regulated banking operations can benefit from open blockchain infrastructure without sacrificing oversight.The Stellar network is a leading institutional-grade blockchain for regulated financial services, offering near-instant settlement and sub-cent transaction costs.
U.S. Bank said it is exploring several uses for USBDC, including cross-border treasury operations, liquidity management, and moving collateral.The bank did not say when the stablecoin could become available to clients or give a timeline for a broader commercial rollout. The move comes as broader institutional appetite for bank-issued stablecoins grows. Last week, 21 financial institutions including Bank of America, Citi, Goldman Sachs, and UBS announced plans to form a company to issue stablecoins for payments and digital asset transactions.
Sources:CoinDesk: U.S. Bank takes next step towards launching its stablecoin with cross-border payment on StellarCrypto Briefing: US Bank tests USBDC stablecoin for cross-border payments on Stellar blockchainCoinTrust: US Bank Tests Stablecoin for Real-Time Cross-Border Payments on Stellar
