US Bank Completes First Live Cross-Border Payment Using USBDC Stablecoin
Highlights
- U.S. Bank completed a live cross-border payment using USBDC, its dollar backed stablecoin, on Stellar blockchain.
- The bank tested minting, redemption, freezing and clawbacks while linking blockchain payments with compliance systems.
- USBDC remains focused on treasury payments, liquidity management and collateral rather than public trading access.
U.S. Bank has completed a live cross-border payment using USBDC, its dollar-backed stablecoin, as major financial institutions expand testing of blockchain-based payment and settlement systems.
US Bank Tests USBDC on Stellar Blockchain
U.S. Bancorp has completed the pilot between its banking entities in North America and Europe. The cross-border transfer was completed on the public Stellar blockchain.
The bank integrated the blockchain payment with its finance, risk, compliance and operations systems. This enabled U.S. Bank to transfer funds on-chain while maintaining the same banking controls.
U.S. Bank also tested minting and redemption on its digital asset platform. The pilot covered freezing and clawback capabilities for the USBDC stablecoin as well.
However, the transaction does not confirm a wider public rollout of USBDC. U.S. Bank has not announced broad customer access or a commercial launch date.
USBDC Targets Payments and Liquidity Management
U.S. Bank is considering USBDC for treasury payments, liquidity management and collateral-related transactions. The bank is also evaluating digital payment solutions that work outside of banking hours.
The pilot marks a move from development into a live financial transaction. However, information such as payment value and future transaction volumes remain undisclosed.
U.S. Bank also has not announced USBDC for cryptocurrency trading or public exchange use. The ongoing project remains focused on banking and institutional payment functions.
The bank’s testing comes as stablecoins attract more attention from major financial institutions.Some lenders are working on blockchain-based payment products for institutional customers.
Major Banks Prepare Separate Stablecoin Project
Goldman Sachs, Bank of America, Citi and Wells Fargo are among 21 institutions backing another stablecoin venture. The group aims to lauch dollar-pegged digital currency in the first half of 2027.
The planned company will start with a stable coin for the U.S. dollar. The members also plan to study tokens that are associated with other G7 currencies such as the euro.
U.S. Bank’s USBDC pilot is still a stand-alone initiative. Furthertesting will be needed to see if the bank opens up the stablecoin beyond its institutional uses.
For more on how businesses settle assets globally using digital dollars, explore our guide to the top stablecoin settlement platforms.
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