US Bank has completed a live pilot of its proprietary USBDC stablecoin, executing real-time cross-border payments between its North American and European divisions on the Stellar blockchain. The test, carried out on September 9, makes US Bank one of the first major American financial institutions to run a bank-issued, dollar-backed stablecoin on a public blockchain in a live operational setting.
What the pilot actually tested
The USBDC pilot tested the full lifecycle of its stablecoin: minting, payment execution, redemption, freezing, and clawback functionality. The pilot was designed to integrate seamlessly with the bank’s existing systems for risk management, compliance, finance, and operations.
The pilot ran on Stellar, a blockchain that has carved out a niche in payments and remittances. US Bank previously collaborated with the Stellar Development Foundation and PwC on stablecoin testing back in November 2025, so this pilot represents a continuation of that relationship rather than a fresh experiment.
CEO Gunjan Kedia emphasized that the pilot plays an essential role in accelerating global cash management. Jamie Walker, Head of Digital Assets and Money Movement, highlighted the focus on addressing real client challenges with advanced bank-grade controls.
The path that led here
The groundwork started in October 2025, when the bank created a dedicated Digital Assets and Money Movement organization aimed at enhancing its involvement in stablecoin issuance, digital asset custody, and tokenization of money. By late 2025, US Bank was already custodying reserves for Anchorage Digital Bank’s stablecoins. The November 2025 collaboration with the Stellar Development Foundation and PwC followed, laying the technical foundation for what became the September 2026 live pilot.
US Bank (officially US Bancorp) is the fifth-largest banking institution in the United States.
Why this matters beyond one pilot
The USBDC pilot outlines a roadmap that extends well beyond a single cross-border transfer. US Bank has identified several future applications for its stablecoin: 24/7 payments, liquidity management, cross-border treasury operations, and enhanced collateral mobility.
US Bank’s decision to issue a stablecoin on a public blockchain, rather than a private or permissioned ledger, sets a different precedent from efforts such as JPMorgan’s blockchain work through Kinexys (formerly Onyx). It signals that regulated institutions can operate on open infrastructure while maintaining the controls their regulators demand.