{"id":15302,"date":"2025-11-27T12:21:00","date_gmt":"2025-11-27T11:21:00","guid":{"rendered":"https:\/\/www.blog.bim.finance\/?p=15302"},"modified":"2025-11-26T19:18:27","modified_gmt":"2025-11-26T18:18:27","slug":"us-bank-stellar-stablecoin-test","status":"publish","type":"post","link":"https:\/\/www.blog.bim.finance\/en\/us-bank-stellar-stablecoin-test\/","title":{"rendered":"US Bank tests stablecoin on Stellar blockchain"},"content":{"rendered":"
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A major US bank embraces blockchain<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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U.S. Bancorp , the fifth-largest commercial bank in America, has commenced testing the issuance of custom stablecoins on the Stellar\u00a0 <\/span>network. The announcement represents a significant milestone in the convergence of traditional banking and blockchain. In partnership with PwC and the Stellar Development Foundation, US Bank is exploring if regulated financial institutions can safely issue programmable money on a public blockchain. The pilot focuses on creating \u00ab\u00a0bank-grade\u00a0\u00bb stablecoins with built-in compliance features.<\/p>

These include the ability to freeze assets, reverse transactions, and implement KYC protocols directly at the blockchain’s base layer. Stellar was chosen specifically because it offers these regulatory tools natively, without requiring custom smart contract development. The blockchain has maintained 99.99% uptime over the past decade and processes transactions in three to five seconds at a fraction of a US cent. This reliability is critical for mission-critical banking systems handling customers’ money.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Denelle Dixon (Stellar Development Foundation CEO) announces joint effort between Stellar and US Bank - X<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The pilot builds on US Bank’s gradual re-entry into digital assets following a more favourable regulatory environment under the Trump administration. The bank recently resumed institutional Bitcoin custody services after a three-year hiatus caused by prohibitive capital requirements. Now, with the repeal of the SEC’s SAB 121 rule and proposed legislation like the GENIUS Act, US Bank has accelerated its blockchain initiatives.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Banks rush to capture stablecoin market share<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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This pilot positions US Bank alongside a growing roster of traditional financial institutions exploring stablecoin issuance. Citigroup recently selected Coinbase as its operational partner for stablecoin development. Meanwhile, Goldman Sachs and Bank of America have announced a consortium to study and test stablecoin use cases in institutional settings. The rush reflects projections that cross-border stablecoin payments could reach $1 trillion in annual volume by the end of the decade, according to Keyrock estimates. Stablecoins offer faster, cheaper, and 24\/7 payment capabilities compared to traditional banking rails. For banks, they represent an opportunity to modernise payment infrastructure whilst maintaining regulatory compliance.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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US Bank don't want to miss the stablecoin rush<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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However, US Bank’s CEO noted that client demand for stablecoin payments remains \u00ab\u00a0muted\u00a0\u00bb at present. The bank is exploring two primary areas: custody services and stablecoin payments. The pilot on Stellar allows the bank to experiment with real-world use cases and gather data on customer interest. The bank is keen to see which applications will manifest and which customers will show the most interest. Stellar currently ranks 19th by stablecoin market capitalisation, with approximately $212 million worth of stablecoins operating on the network. Its payments-focused architecture has been active since 2014, making it one of the longer-running blockchain networks.<\/p>

Whilst there is no public timeline for when US Bank’s stablecoin initiative might launch commercially, the pilot signals a clear strategic direction. As regulatory frameworks solidify and institutional adoption accelerates, traditional banks are positioning themselves to claim market share in what could become a multi-trillion-dollar sector. Moreover, the choice of a public blockchain over private or permissioned networks indicates confidence that regulated stablecoins can coexist with broader crypto ecosystems.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Sources<\/strong> :<\/p>