U.S. Bank is testing a stablecoin on the Stellar blockchain in collaboration with the Stellar Development Foundation and PwC. The project leverages Stellar's unique ability to freeze assets and unwind transactions at the blockchain layer, positioning the bank among traditional financial institutions exploring stablecoin infrastructure.
U.S. Bank announced it is testing its own stablecoin on the Stellar blockchain, working with consulting firm PwC and the Stellar Development Foundation. The Minneapolis-based bank selected Stellar specifically for its underlying architecture that allows freezing or undoing transactions at the blockchain level, rather than just in business logic. Mike Villano, senior VP and head of digital asset products at U.S. Bank, described blockchain as an alternative payment rail and expressed interest in emerging use cases. This move follows the signing of the GENIUS Act, which regulates stablecoin issuance and trading, and joins a wave of traditional banks including Citi, Goldman Sachs, Bank of America, and Barclays exploring stablecoin ventures. U.S. Bank is also custodying reserves for Anchorage Digital's stablecoins, further cementing its role in the digital asset space.