US Bancorp, the fifth-largest US bank by assets, has started testing a stablecoin on the Stellar
The trial is being carried out with support from PricewaterhouseCoopers (PwC) and the Stellar Development Foundation (SDF).
US Bancorp, the parent company of US Bank, manages over $664 billion in assets and reports annual revenue of over $27.5 billion. According to the bank, the pilot is designed to test how blockchain technology can work in a secure, regulated environment.
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Kurt Fields, blockchain lead at PwC, described the initiative during a Money 20/20 episode of the US Banks podcast. He stated that the focus has shifted from experimenting with blockchain to demonstrating its application in real financial systems.
Mike Villano, who oversees digital asset products at US Bank, said Stellar’s ability to freeze assets and reverse transactions was an important factor.
He explained that these safeguards are normally written into business systems, but Stellar allows them to be handled directly at the blockchain level.
Villano also shared that the bank is researching tokenized assets. It explores how blockchain could enable efficient cross-asset transfers.
Stellar, launched in 2014, is an open-source blockchain built to support cross-border transfers and digital asset issuance. The platform’s features were key in US Bancorp’s decision to use it for this pilot.
Recently, UBS partnered with Ant International to test a new way to transfer money across countries using blockchain technology. What did Kelvin Li, global manager of platform tech at Ant International, say? Read the full story.
