US Bank Pilots Its Own Stablecoin
Major U.S. banks are launching proprietary stablecoins on the Stellar blockchain to build their own cross-border payment rails.
U.S. Bancorp, the fifth-largest US bank per coverage, completed a live pilot of its proprietary USBDC stablecoin on the Stellar blockchain, including a real-time cross-border payment between its US and European operations, per Cointelegraph and Stellar's own announcement. Coverage framed the pilot as large banks building their own stablecoin rails rather than relying on third-party issuers such as Circle. A pilot demonstrates capability, not volume; no customer rollout was announced.
USBDC: the freeze button is the point
The pilot didn't just move a dollar between U.S. Bank's American and European arms.
It also tested freezing and clawback — locking a payment, or reversing it after the fact.
That leash isn't new.
Circle can blacklist USDC addresses, and has. Tether froze $42 million this year on a government's informal request — before any warrant existed.
What's different this week: a bank put the leash in the product demo — tested it as a feature, on a public blockchain, in the open.
So don't read this as banks building a more controlled dollar than Circle's. Read it as a bank being honest about what a compliant blockchain dollar is.
Multi-media snippets
US Bank launches stablecoin on Stellar blockchain
7 sources
- U.S. Bancorp Advances Stablecoin USBDC Development, Completes Real-Time Cross-Border Payment Test · panewslab.com · T2
- U.S. Bank Completes Live USBDC Stablecoin Pilot on Stellar · blockchainreporter.net · T2
- Circle Stock Price in Focus Amid Competition From US Bank’s USBDC Stablecoin Launch · coingape.com · T2
- U.S. Bank tests proprietary stablecoin in cross-border Stellar transaction · cointelegraph.com · T1
- U.S. Bank’s Stablecoin Pilot on Stellar Sends a Clear Signal: Banks Want Their Own Rails · forkast.news · T2
- XLM: A Bank-Issued Stablecoin Moves Real Money on Stellar · stellar.org · T2
- US Bank launches stablecoin on Stellar blockchain · youtube.com · T3