US Bank is testing custom stablecoin issuance on Stellar with the Stellar Development Foundation and PwC, focusing on faster cross-border transactions and banking protections like asset freezing and transaction reversals.
US Bank is piloting stablecoin issuance on the Stellar blockchain in partnership with the Stellar Development Foundation and PwC. The project explores programmable money for cross-border payments while maintaining banking safeguards including know-your-customer verification, transaction unwinding, and asset clawback capabilities. Mike Villano, SVP of digital asset products at US Bank, highlighted Stellar's base-layer ability to freeze assets and reverse transactions as a key advantage. The pilot aims to demonstrate how stablecoins can reduce costs and speed in international transfers while meeting regulatory requirements. This follows CEO Gunjan Kedia's October announcement that the bank was exploring stablecoins despite limited customer demand.