U.S. Bancorp tests its own Stellar-based stablecoin

JH Kim

Summary

U.S. Bancorp has begun piloting its own Stellar blockchain based stablecoin.
It said the move coincides with the intensifying trend of banks adopting on-chain payment infrastructure.
It reported that attention is focused on whether U.S. Bancorp's pilot issuance of a stablecoin will lead to commercial service.

It has been confirmed that U.S. Bancorp, a large U.S. bank, is piloting its own stablecoin on the Stellar blockchain. It is a move that aligns with the trend of the banking sector's competition to adopt on-chain payment infrastructure.

On the 25th (local time), according to crypto media UBlockchain, U.S. Bancorp recently established a digital assets and funds transfer department and began tests to issue a Stellar-based stablecoin.

Mike Villano, head of digital asset products, cited Stellar's asset-freezing feature as a main reason, calling it "a key control function that institutions must consider when evaluating on-chain stablecoins."

Stellar has provided compliance tools and asset control features for traditional financial institutions, and this test is interpreted as a phased review process for U.S. Bancorp to transition its internal payment and asset transfer systems to an on-chain method.

Among banks, the use of stablecoins is rapidly spreading, following JPMorgan, Citigroup, and others, and attention is focused on whether U.S. Bancorp's pilot issuance will lead to an actual commercial service.