U.S. Bank Completes Live Cross-Border Payment Using USBDC on Stellar
Key Takeaways
- •U.S. Bank executed a live cross-border payment using its proprietary USBDC stablecoin issued on the public Stellar blockchain, moving funds between its North American and European entities.
- •The pilot tested the stablecoin's minting, redemption, freezing and clawback functions and was integrated with the bank's existing risk, compliance and operations systems.
- •The transaction validated U.S. Bank's internally developed Digital Asset Platform, which connects tokenized assets with the bank's traditional banking infrastructure.
- •The bank is evaluating additional uses for USBDC, such as cross-border treasury operations, liquidity management and onchain collateral movement, but has not announced a timeline for broader deployment.
- •U.S. Bank's stablecoin push reflects broader industry momentum, with 21 major institutions planning a joint stablecoin venture targeting a 2027 launch and Fidelity's FIDD reaching roughly $50 million in circulation.
U.S. 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 U.S. Bank entities in North America and Europe. USBDC was issued and moved on the public Stellar network, while the test also covered the stablecoin’s minting, redemption, freezing and clawback functions. The process was integrated with the bank’s existing risk, compliance and operations systems, placing the test in the context of the controls required for use within a banking organization.
According to U.S. Bank, the transaction validated its internally developed Digital Asset Platform, which connects tokenized assets with the bank’s traditional banking infrastructure. The Minneapolis, Minnesota-based bank is exploring additional applications, including cross-border treasury operations, liquidity management and moving collateral onchain. Those stated applications indicate the bank is evaluating USBDC beyond a single payment workflow, although the announcement does not provide a timeline for broader deployment.
The pilot is part of U.S. Bank’s broader digital-asset strategy. In October 2025, the bank established a dedicated Digital Assets and Money Movement organization focused on stablecoin issuance, crypto custody, asset tokenization and digital money movement.
U.S. Bank, the country’s sixth-largest financial institution by assets, has been testing custom stablecoin issuance on Stellar since at least November 2025 in collaboration with PwC and the Stellar Development Foundation.
Banks deepen stablecoin push
Although American banks have opposed allowing stablecoin issuers and crypto platforms to offer yield or rewards, some of the industry’s largest lenders are advancing stablecoin projects of their own.
On Sept. 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 serve wholesale, institutional and retail markets, including cross-border payments and digital-asset settlement.
Fidelity entered the market in February with its Fidelity Digital Dollar (FIDD), issued through Fidelity Digital Assets, its national trust bank, and made available to retail and institutional investors. FIDD had approximately $50 million in circulation at the time of writing, according to DefiLlama data.
