A major billion-dollar bank is executing a live pilot of its proprietary dollar-backed stablecoin on a public blockchain to move funds across borders.
U.S. Bank, which is headquartered in Minneapolis, Minnesota, says the transaction was completed on the Stellar network between its North American and European entities.
The pilot validates the bank’s Digital Asset Platform, which supports minting, redemption, freezing and clawback functions while remaining linked to existing finance, risk and compliance systems.
Gunjan Kedia, chairman and chief executive officer at U.S. Bank, addressed the pilot’s impact.
“This live pilot demonstrates our ability to accelerate global cash management and money movement capabilities. We are excited to create value for our clients and harness the power of a new technology within the banking system.”
Jamie Walker, head of Digital Assets and Money Movement at U.S. Bank, discussed the strategy.
“This pilot is another step forward in our broader digital asset strategy. Our focus remains on delivering solutions that solve real client challenges while maintaining the safety, security and reliability that clients expect from U.S. Bank.”
Future use cases of the stablecoin that are under review include liquidity management, collateral mobility and cross-border treasury operations.
U.S. Bank is the sixth-largest bank in the US with a total asset base of 638.38 billion as of the second quarter, according to the Federal Reserve.
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