U.S. Bank Completes First Live USBDC Stablecoin Transaction

U.S. Bancorp has completed a live pilot transaction using its proprietary US dollar-backed stablecoin, USBDC, as major US banks explore how blockchain-based payments could fit within existing financial infrastructure.

The transaction involved a cross-border transfer between U.S. Bank entities in North America and Europe using the public Stellar blockchain. The bank also tested the stablecoin’s minting, redemption, freezing, and clawback functions through its internally developed Digital Asset Platform.

The successful pilot marks one of the first deployments of a bank-issued stablecoin on a public blockchain, amid a broader shift among established lenders toward testing blockchain infrastructure for conventional banking activities.

Meanwhile, U.S. Bank said the exercise demonstrated that on-chain transfers could operate alongside its existing finance, risk, compliance and operations systems.

Gunjan Kedia, chairman and CEO of U.S. Bank, said the pilot demonstrated the bank’s ability to accelerate global cash management and money movement, adding that it was focused on using the technology within the banking system.

While the ‘live’ transaction was an internal transfer rather than a payment for a U.S. Bank customer, the bank is now exploring a range of potential applications, including cross-border treasury operations, liquidity management and collateral mobility.

Elsewhere, other banks are developing their own approaches to stablecoins, following growing adoption of dollar-backed digital assets for payments and settlement. Goldman Sachs, Bank of America, Citigroup and Wells Fargo are also planning to develop a jointly issued dollar-backed stablecoin, according to Reuters.