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US Bank, one of the largest commercial banks in the United States, announced on the 26th that it has begun testing a USD-backed stablecoin issued directly on the Stellar (XLM) blockchain. The initiative marks a rare move among major U.S. banks to experiment with a public blockchain for stablecoin issuance.
.@usbank is testing custom stablecoin issuance on the Stellar network.
Real infrastructure testing for regulated deposit tokens — the kind that could reshape how banks move money.
Here's what’s happening.https://t.co/C7sqTIDJZF pic.twitter.com/ZFXC5Q1a49
— Stellar (@StellarOrg) November 25, 2025
Building a Bank-Grade Token Infrastructure on Stellar
The project is being jointly developed with PwC and the Stellar Development Foundation (SDF), the organization behind the Stellar Lumens (XLM) ecosystem. The aim is to establish a compliant, bank-grade framework for issuing regulated deposit tokens.
US Bank plans to leverage Stellar’s capabilities, particularly its speed, cost efficiency, and suitability for asset tokenization, to conduct pilot issuance of a stablecoin fully backed 1:1 by the U.S. dollar.
The tokens will be evaluated for regulatory compliance, operational integrity, and compatibility with existing commercial banking workflows.
The initiative places strong emphasis on enterprise-level infrastructure, positioning the project as a structural bridge between traditional financial networks and blockchain-based settlement systems.
PwC is overseeing compliance and regulatory architecture, while SDF is responsible for technical implementation and network integration.
Why U.S. Banks Are Moving Toward Blockchain
The test launch comes as U.S. regulators continue to advance formal stablecoin frameworks, improving transparency, audit standards, and oversight for financial institutions looking to enter the sector.
Cross-border payments, which is an area where legacy infrastructure faces long-standing limitations, represent a key use case driving interest. Stellar’s technology, optimized for global remittances and instant settlement, is increasingly viewed as a promising upgrade to outdated international payment rails.
US Bank’s direct experimentation places it ahead of most financial institutions, many of which remain in exploratory phases rather than entering real-world testing. The initiative demonstrates a concrete blueprint for blending traditional banking operations with public blockchain technology.
What Comes Next
Industry observers will focus on whether US Bank proceeds with commercial deployment following the pilot results, and whether other major banks follow suit with their own stablecoin or tokenization programs.
The test marks a significant step toward integrating stablecoins into mainstream banking services and signals growing institutional confidence in blockchain-based payment infrastructure.
