US Bank tests USBDC stablecoin for cross-border payments on Stellar blockchain

US Bank has completed a live pilot of its proprietary USBDC stablecoin, executing real-time cross-border payments between its North American and European divisions on the Stellar blockchain. The test, carried out on September 9, makes US 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. What the pilot actually tested The USBDC pilot tested the full lifecycle of its stablecoin: minting, payment execution, redemption, freezing, and clawback functionality. The pilot was designed to integrate seamlessly with the bank’s existing systems for risk management, compliance, finance, and operations. The pilot ran on Stellar, a blockchain that has carved out a niche in payments and remittances. US Bank previously collaborated with the Stellar Development Foundation and PwC on stablecoin testing back in November 2025, so this pilot represents a continuation of that relationship rather than a fresh experiment. CEO Gunjan Kedia emphasized that the pilot plays an essential role in accelerating global cash management. Jamie Walker, Head of Digital Assets and Money Movement, highlighted the...