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U.S. Bank completes live cross-border test of its USBDC stablecoin
The pilot involved minting and redeeming USBDC and included freezing and clawing back tokens as the bank evaluated cross-border treasury and liquidity use cases.
U.S. Bank said it has completed a live cross-border payment test using its dollar-backed USBDC stablecoin on the Stellar blockchain, marking another step toward broader stablecoin deployment in traditional banking operations, according to CoinDesk.
The fifth-largest U.S. commercial lender said the transaction ran between U.S. Bank entities in North America and Europe and followed an earlier pilot it disclosed in November. U.S. Bank said it is exploring USBDC for cross-border treasury operations, liquidity management, and moving collateral.
CoinDesk reports that the pilot also tested multiple functions, including minting and redeeming tokens, as well as freezing and clawing back tokens. The bank said the run validated its internally developed Digital Asset Platform, which connects blockchain networks with its finance, compliance, risk, and operations systems.
U.S. Bank CEO Gunjan Kedia said the live pilot demonstrates the bank’s ability to accelerate global cash management and money movement capabilities, CoinDesk reported. The article also notes that banks are increasingly moving into stablecoin use as regulations advance, with other large institutions and European lenders working on stablecoin initiatives for payments and treasury purposes.