US Bank Completes Live Pilot of USBDC Stablecoin for Cross-Border Payments

US Bank has completed a live pilot of its proprietary USBDC stablecoin, facilitating real-time cross-border payments between its North American and European divisions on the Stellar blockchain. This pilot, conducted on September 9, positions US Bank as one of the first major American financial institutions to utilize a bank-issued, dollar-backed stablecoin in a live operational context.

The pilot tested the full lifecycle of the USBDC stablecoin, including minting, payment execution, redemption, freezing, and clawback functionalities. Designed to integrate with the bank’s existing systems for risk management and compliance, the pilot reflects US Bank's ongoing collaboration with the Stellar Development Foundation and PwC, which began in November 2025.

CEO Gunjan Kedia emphasized the pilot's role in enhancing global cash management, while Jamie Walker, Head of Digital Assets and Money Movement, noted the focus on addressing real client challenges through advanced bank-grade controls. The groundwork for this initiative was laid in October 2025 when US Bank established a dedicated Digital Assets and Money Movement organization.

Beyond this pilot, US Bank has identified several future applications for its stablecoin, including 24/7 payments, liquidity management, and enhanced collateral mobility. By choosing to issue a stablecoin on a public blockchain rather than a private ledger, US Bank sets a new precedent for regulated institutions operating on open infrastructure.