US Bank, the fifth largest commercial bank in the United States, has completed a live cross-border payment using its proprietary USBDC stablecoin on the Stellar blockchain.
The pilot transferred funds between US bank entities in North America and Europe, issuing USBDCs and transferring them to the public Stellar network. It also tests the stablecoin’s minting, redemption, freezing and clawback functions while integrating with the bank’s existing risk, compliance and operations systems.
The transaction validated US Bank’s internally developed digital asset platform, which connects tokenized assets to its traditional banking infrastructure, the bank. said on wednesday The Minneapolis, Minnesota-based bank is exploring additional uses, including cross-border treasury operations, liquidity management and moving collateral onchain.
The pilot builds on a broader push for US Bank’s digital assets. In October 2025, the bank established a dedicated digital asset and money movement unit Focuses on stablecoin issuance, crypto custody, asset tokenization and digital money movement.
US Bank has become the country’s sixth largest financial institution in terms of assets test Issuing custom stablecoins on Stellar from at least November 2025, working alongside PwC and the Stellar Development Foundation.
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Banks deepen stablecoin push
While American banks have pushed back against allowing stablecoin issuers and crypto platforms to offer yields or rewards, some of the industry’s biggest lenders are moving ahead with their own stablecoin projects.
On September 1, 21 major financial institutions, including Bank of America, Citi, Goldman Sachs, Deutsche Bank and UBS, announced plans to form a company to issue stablecoins.
The group plans to launch a US dollar-denominated stablecoin in the first half of 2027 before expanding to other G7 currencies. The token is expected to target the wholesale, institutional and retail markets, including cross-border payments and digital asset settlement.
Loyalty too entrance Fidelity Digital Assets issued with Fidelity Digital Dollars (FIDD) in February, available to markets, its national trust bank, and retail and institutional investors. At the time of writing FIDD had a circulation of around $50 million according to DefiLlama Information.
FIDD Market Cap. Source: Dephyllama
