U.S. Bank Runs First Live USBDC Pilot
U.S. Bank has completed the first live pilot of its USBDC stablecoin. The bank moved real money between its U.S. and European branches. The transfers ran over the public Stellar network, not a private ledger built just for the bank. That choice matters. Most large banks stay away from open networks because of regulatory risk. U.S. Bank tried to solve that with technology and controls.
Jamie Walker, the bank’s head of digital assets, said the platform is tied into its internal risk management system. The USBDC code also includes freeze and clawback functions. If a payment goes to the wrong address, or if financial intelligence authorities flag it, the bank can freeze or return the funds with a click. That kind of control is likely why the pilot could move forward inside a regulated bank.
Stellar Development Foundation CEO Denelle Dixon called the launch a precedent for the industry. She said the live pilot shows regulated financial institutions using Stellar’s speed and open architecture for cross-border settlement. U.S. Bank CEO Gunjan Kedia confirmed the pilot worked. She said the technology could let the bank move capital between continents around the clock at almost no cost. It would bypass traditional intermediaries and long interbank reconciliations.
For now, USBDC stays closed. It will be used only for the bank’s internal settlements and treasury operations. So ordinary customers will not see it yet. The bank is not trying to launch a retail token at this stage.
Why Stellar Got the Call
Stellar was picked partly because the infrastructure is already there. RWA.xyz data shows the network holds about $3.32 billion in real-world assets. Retail users mostly know Stellar through USDC, which has around 685,000 holders. U.S. Bank is taking a different route. It is closer to what funds like Spiko and Figure’s YLDS token are doing. This is not a format for everyone. The system may have only a handful of wallets, all belonging to the bank’s own divisions. Billions of dollars in transactions can still flow through them.
U.S. Bank May Have Beaten Rivals
Other banks are moving slower. A group of about two dozen major banks, including Goldman Sachs, has promised a shared interbank token by 2027. U.S. Bank, the fifth-largest U.S. bank, has already tested a working solution on a public blockchain. That does not mean full rollout is next week. Regulatory approval, internal audits, and customer demand will shape what comes next. Still, the pilot gives U.S. Bank an early edge. If the model holds, more banks may look at public networks for settlement, though most will likely want the same control features USBDC has.
