U.S. Bank Tests Proprietary Stablecoin In Cross-Border Payment
By CU Today Staff —
MINNEAPOLIS—U.S. Bank said it has successfully completed a live pilot transaction using USBDC, its proprietary U.S. dollar-backed stablecoin, for a cross-border payment between the bank's entities in North America and Europe.
The bank said USBDC is among the first bank-issued stablecoins deployed on a public blockchain.
The transaction was completed on the Stellar blockchain and demonstrated U.S. Bank's ability to move value on-chain while integrating the transaction with its existing finance, risk, compliance and operations systems.
“This live pilot demonstrates our ability to accelerate global cash management and money movement capabilities," said Gunjan Kedia, chairman and CEO of U.S. Bank. “We are excited to create value for our clients and harness the power of a new technology within the banking system.”
The pilot tested stablecoin minting, payment redemption, freezing and clawback capabilities while also validating U.S. Bank's internally developed Digital Asset Platform. The platform is designed to issue, manage and move tokenized assets while connecting traditional banking infrastructure with blockchain networks. U.S. Bank said it is exploring applications including liquidity management, collateral mobility and cross-border treasury operations.
"This pilot is another step forward in our broader digital asset strategy," said Jamie Walker, head of Digital Assets and Money Movement at U.S. Bank. "Our focus remains on delivering solutions that solve real client challenges while maintaining the safety, security and reliability that clients expect from U.S. Bank."
Originally reported by CU Today.