U.S. Bank, the fifth-largest U.S. commercial bank, has begun testing custom stablecoin issuance on Stellar with PwC and the Stellar Development Foundation. The pilot explores how Stellar's asset freezing and transaction reversal capabilities can meet regulatory and compliance requirements for mainstream bank adoption.
U.S. Bank has launched a pilot program to test issuing bank-grade stablecoins on the Stellar blockchain network in partnership with PwC and the Stellar Development Foundation. The initiative examines whether traditional banks can safely issue programmable money on a public blockchain while meeting regulatory standards. A key focus is Stellar's built-in features for freezing assets and reversing transactions, which align with compliance requirements like Know-Your-Customer (KYC) protocols. The pilot highlights stablecoins' growing role in faster, cheaper cross-border payments, with projections suggesting cross-border stablecoin volumes could reach $1 trillion annually by decade's end.