U.S. Bancorp Tests Stablecoin on Stellar as Banks Accelerate On-Chain Payments Adoption
U.S. Bancorp has initiated stablecoin testing on the stellar blockchain, marking another step in traditional finance's embrace of digital asset infrastructure. The Minneapolis-based institution formed a dedicated crypto division and is pursuing dual tracks: custody services and payment rail development.
Senior VP Mike Villano highlighted stablecoins' operational advantages—24/7 settlement, reduced costs, and speed—while emphasizing the need for bank-specific safeguards. Stellar's asset-freezing capability and finance-native architecture proved decisive in the platform selection, differentiating it from competitors.
The move follows growing institutional activity on Stellar, with Circle's USDC and Franklin Templeton already leveraging the network. Though client demand for crypto payments remains tepid according to CEO Gunjan Kedia, the bank's infrastructure buildout signals long-term conviction in blockchain-based settlement.
