U.S. Bancorp is testing a stablecoin on Stellar, joining major financial institutions exploring blockchain-based payments. The bank values Stellar's asset-freezing capability and independent structure for institutional confidence.
U.S. Bancorp announced it is testing its own stablecoin on the public Stellar blockchain as part of a broader digital assets initiative. The bank is exploring stablecoins in two areas: crypto asset custody and stablecoin payments, though CEO Gunjan Kedia noted client demand for payments remains muted. U.S. Bank's head of digital asset products highlighted Stellar's ability to freeze assets as a key advantage, alongside features like know-your-customer protections and transaction clawback capabilities. The move reflects growing institutional interest in blockchain infrastructure, with Stellar's independent nonprofit structure positioning it as a neutral platform compared to corporate-backed alternatives like Ripple or Coinbase's Base.
