US Bank Advances Stablecoin Plans With Successful Cross-Border Payment Test

US Bank has completed a live cross border payment using its proprietary dollar backed stablecoin, USBDC, moving funds between the bank’s North American and European entities. The pilot marks a significant step for the Minneapolis based lender as it explores broader applications for the token across its payments and treasury operations.

Pilot Tests Core Stablecoin Functions

The trial validated the bank’s ability to mint and redeem USBDC tokens, along with freezing and clawing back funds when needed. It also confirmed the functionality of the bank’s internally built Digital Asset Platform, which links blockchain infrastructure with its finance, compliance, risk and operations systems. The transaction ran on the Stellar blockchain, following an earlier partnership announced last year to experiment with custom stablecoin issuance.

Banks Increasingly Move Into Stablecoin Space

The announcement reflects a broader trend of traditional financial institutions entering the stablecoin market as global regulations take shape. Just last week, a group of major banks including Bank of America, Citi, Goldman Sachs and UBS revealed plans to jointly issue stablecoins for payments, with a dollar-pegged token expected in the first half of 2027. A separate consortium of European lenders has similarly moved to launch a euro-backed stablecoin. US Bank said it is considering uses for USBDC including cross border treasury management, liquidity operations and collateral movement, though it has not provided a timeline for wider commercial availability.