U.S. Bank has completed a test payment using USBDC, its dollar-backed stablecoin, moving digital assets across borders through the Stellar blockchain network. The Minneapolis-based lender built USBDC through a 2025 partnership with Stellar and PwC, with the stablecoin minted, paid, and redeemed entirely within the bank's internal systems.
Jamie Walker, U.S. Bank's digital assets lead, described the pilot as "another step forward," emphasizing the bank's focus on solutions that "solve real client challenges" while maintaining safety and reliability. He noted that USBDC works alongside the Open Standard and Zelle consortiums to address distinct client needs and use cases, with U.S. Bank maintaining a long-term focus on interoperability across digital asset networks.
According to Stellar, the stablecoin serves as "a faster and cheaper means" to execute cross-border payments compared to traditional correspondent banking methods for currency conversion and compliance.
Broader Stablecoin Strategy
USBDC forms one piece of a larger U.S. Bank digital assets strategy. The bank provides custody for Anchorage Digital Bank's stablecoin platform, offers bitcoin custody, and provides a cryptocurrency ETF. U.S. Bank plans to continue working with GENIUS Act-compliant stablecoin issuers.
U.S. Bank is part of the Open USD consortium, which spans more than 140 banks, fintechs, and crypto companies. Members include BNY, Huntington, Citizens, American Express, Visa, Mastercard, Stripe, Adyen, Affirm, Klarna, and Coinbase.
Market Adoption Challenges
Despite growing institutional interest, stablecoins from crypto firms such as Circle and Tether still lead the market, while banks have largely waited for clearer regulation before issuing their own products. McKinsey data shows stablecoins account for less than one percent of remittance volume, with B2B and capital markets payments using stablecoins below 0.01 percent.
Banks favor tokenized deposits as a less risky alternative, with 24 of the top 50 banks now tracking tokenized deposits. Tony DeSanctis of Cornerstone Advisors expects stablecoins to grow through scale and cooperation, predicting that "a consortium of banks or payment processors" will likely be the end state, similar to how Zelle rose as a shared network. He noted that larger solutions supporting multiple institutions are positioned to prevail over smaller consortiums or individual banks offering coins.
