U.S. Bank completed its first live pilot transaction using USBDC, its proprietary US dollar-backed stablecoin. The transaction enabled a cross-border payment between U.S. Bank entities in North America and Europe. Thus, marking a key milestone in the bank’s digital asset strategy.
The pilot demonstrates how the U.S. Bank can move value on a public blockchain while retaining its existing banking infrastructure and controls. The transaction was completed on the Stellar blockchain, which the U.S. Bank is evaluating for institutional financial applications.
The live pilot tested several functions needed to operate a regulated digital asset. These included minting, payment redemption, freezing and clawback capabilities. U.S. Bank also used the transaction to validate its internally developed Digital Asset Platform.
The platform supports the issuance, management and movement of tokenised assets. It is designed to connect blockchain networks with the bank’s existing finance, risk, compliance and operations infrastructure.
The U.S. Bank said, “The approach could help address some of the limitations of traditional cross-border payment infrastructure. Blockchain-based transactions can operate around the clock, potentially improving the speed of global money movement and settlement.”
Gunjan Kedia, chairman and CEO of U.S. Bank, said, “ The pilot demonstrates the bank’s ability to accelerate global cash management and money movement capabilities. The bank plans to continue evaluating applications where digital assets can address specific client requirements.”
The development places U.S. Bank among financial institutions experimenting with bank-issued stablecoins and blockchain-based settlement. However, USBDC remains part of an ongoing pilot and does not yet represent a broad commercial replacement for conventional payment systems.
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