U.S. Bank has conducted a pilot project using the Stellar blockchain to move dollars from North America to Europe. The bank utilized a specialized token, USBDC, which is not available for purchase by customers. During the tests, the bank successfully performed four operations: creating the token, cashing it out, freezing it, and reclaiming it.
The choice of Stellar was driven by the specific capabilities of the network. The blockchain allows the issuer of a token to block accounts or destroy coins located in other users' wallets. This functionality serves as a 'kill switch' that allows the bank to undo payments, differentiating it from standard stablecoins used by traders.
U.S. Bank operates independently of a broader industry trend. While 21 major financial institutions, including Goldman Sachs, Bank of America, and Deutsche Bank, have agreed to launch a shared dollar-pegged stablecoin by the first half of 2027, U.S. Bank has opted not to join this group. The group plans to expand into other G7 same-currency tokens.
The bank's strategy is based on its significant scale. According to Federal Reserve data from March, U.S. Bank is ranked sixth among domestic commercial banks with $683 billion in assets. The bank aims to solve client challenges regarding global cash management and money movement, specifically targeting weekend payrolls and collateral movement.