U.S. Bancorp is testing its own stablecoin on the Stellar blockchain, joining other major banks like Bank of America and Citi in exploring USD-backed digital assets. The bank chose Stellar for its security features, including the ability to freeze assets and clawback transactions. This aligns with U.S. Bank's new digital assets division focused on stablecoins, custody, and tokenization.
U.S. Bancorp, the fifth-largest U.S. bank with $671 billion in assets, announced it is testing its own stablecoin on the Stellar blockchain. The decision was influenced by Stellar's robust security features, such as asset freezing and transaction clawbacks at the base layer, which are crucial for bank customers' KYC and compliance needs. This move positions U.S. Bank alongside traditional institutions like Bank of America and Citi exploring digital payments and stablecoins. Recently, U.S. Bank established a dedicated digital assets division to pursue revenue from stablecoin issuance, crypto custody, asset tokenization, and digital money movement. Stellar's network boasts 99.99% uptime over the past decade and is utilized by firms like Taurus, Franklin Templeton, WisdomTree, and Circle. The native XLM token is currently trading at $0.25, down 2.9% daily and 72% from its all-time high.
