U.S. Bancorp Pilots Stellar-Based Stablecoin as Digital Money Plans Expand
U.S. Bancorp has begun testing its own U.S. dollar–backed stablecoin on the Stellar blockchain, marking its most decisive move yet into digital finance. The initiative places the bank alongside other major U.S. financial institutions exploring blockchain-powered payment rails built on fully backed digital dollars and Treasurys.
As of Sept. 30, U.S. Bancorp stands as the fifth-largest U.S. bank, overseeing $671 billion in assets, according to Federal Reserve data. Its decision to use Stellar appears driven by a need for high-level transaction control and compliance.
According to senior executives, Stellar’s built-in features—such as asset freezing and transaction clawbacks—were key advantages in meeting bank-grade security, KYC controls, and consumer protections. These capabilities allow U.S. Bancorp to test digital asset flows in a tightly regulated environment.
The move comes shortly after the bank launched a dedicated digital assets division tasked with expanding revenue from emerging blockchain products, including stablecoin issuance, crypto custody, tokenized assets, and digital money movement. Executives say interest from clients continues to rise as businesses evaluate blockchain for faster settlement, deposit mobility, and tokenized asset operations.
Stellar, which boasts a decade of 99.99% uptime, remains a preferred network among institutional players. Firms such as Franklin Templeton, WisdomTree, Taurus, and Circle already rely on its infrastructure for tokenization and digital asset settlement.
Meanwhile, Stellar’s native token XLM was trading at $0.25 on Tuesday, down 2.9% amid broader market softness. XLM remains almost 72% below its record high of $0.88.
If U.S. Bancorp proceeds beyond the testing phase, its stablecoin could become one of the largest bank-backed digital dollar projects in the U.S. banking landscape—further signaling that blockchain-powered money movement is quickly becoming part of mainstream financial plans.