U.S. Bank, a major financial entity based in the United States, has successfully completed its first live pilot involving a stablecoin named USBDC. This initiative involved conducting real money transfers between branches in the U.S. and Europe using the public Stellar blockchain, demonstrating the feasibility of executing large-scale capital movements on an open network without the need for a private infrastructure.
Why an Open Blockchain for the Pilot?
U.S. Bank tackled the prevalent issue of regulatory uncertainties and compliance burdens associated with open networks by leveraging technology. According to Jamie Walker, head of the bank’s digital assets unit, the platform is fully integrated with the bank’s internal risk management system.
The USBDC code includes freeze and clawback functionalities. These features enable the bank to immediately freeze or retract funds if they are sent to the wrong address or if flagged by financial intelligence units.
Jamie Walker emphasized that the platform is fully integrated with the bank’s internal risk management infrastructure, allowing compliant transactions on the open network.
Gunjan Kedia, an executive leader at U.S. Bank, confirmed the pilot’s success, reflecting that the technology allows capital to be transferred across continents at any time of the day with significantly reduced costs. It minimizes reliance on traditional intermediary structures and lengthy settlement processes.
Initially, USBDC will be used solely for the bank’s internal reconciliation and treasury operations, functioning as a closed tool. It will operate through a limited number of corporate wallets and is not intended for broad public access.
Stellar Blockchain: Why This Choice?
The decision to utilize Stellar comes from its ready technical infrastructure. According to RWA.xyz data, the Stellar ecosystem hosts $3.32 billion in real-world assets. While it’s more commonly known for its retail operations with USDC, U.S. Bank’s approach pertains to institutional use cases similar to Spiko and Figure’s YLDS token. Stellar, established in 2014, is recognized for its focus on cross-border payments as an open-source blockchain network.
- Limited user base, high transaction volume expected.
- Funds transfer confined to a few of the bank’s internal wallets.
- Capable of managing billions of dollars in transactions.
This step positions U.S. Bank ahead of its competitors. A consortium, including Goldman Sachs, is planning a shared interbank token system by 2027. Meanwhile, U.S. Bank, the fifth-largest bank in the United States, has successfully piloted a solution on a public blockchain.
