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Stellar Blockchain Chosen for US Bancorp Stablecoin Test
US Bancorp has joined the growing number of financial institutions exploring blockchain technology with a new stablecoin pilot. The initiative, conducted in partnership with PricewaterhouseCoopers (PwC) and the Stellar Development Foundation (SDF), aims to demonstrate the potential of blockchain in a secure, bank-grade environment.
Institutions Embrace Blockchain for Digital Banking
In a statement, the Stellar Development Foundation emphasized the growing institutional interest: “The bottom line is institutions have arrived. New financial infrastructure is taking shape now, and US Bank, PwC, and SDF are working to unlock the next wave of digital banking,” the foundation said.
US Bancorp, the publicly traded parent company of US Bank, manages over $664 billion in assets and reports annual revenue exceeding $27.5 billion, highlighting the scale of the institution exploring this technology.
PwC Highlights Trusted Blockchain Applications
Kurt Fields, director and blockchain lead at PwC, explained that the pilot’s main goal is to showcase blockchain’s promise in a controlled banking environment. Speaking on the US Banks podcast, Money 20/20, he noted: “We’ve been talking about blockchain for years, and we’re at a point now where it’s not about innovation anymore.”
The focus is on demonstrating practical applications of blockchain that meet institutional standards for reliability and security.
Stellar Chosen for Asset Control Capabilities
The Stellar blockchain, launched in 2014, is an open-source, decentralized platform designed for cross-border payments and asset tokenization. Mike Villano, head of digital assets products at US Bank, highlighted a key reason for selecting Stellar: “The Stellar platform has the ability at their base operating layer to freeze assets and unwind transactions, which was a key consideration for customer protections.”
He added: “Often, you might write that into the business logic itself, but in this instance, you could do it at the core blockchain layer. So that was very interesting to us.” This functionality allows the bank to maintain additional safeguards for clients while experimenting with digital assets.
Research on Tokenized Assets Underway
US Bank is also exploring broader applications of blockchain technology through tokenized assets. Villano stated: “We’re also doing some additional research around tokenized assets, where if you could take the value proposition of moving quickly, moving 24/7 and moving it very efficiently, you can apply that to all sorts of other asset classes that come along with it.”
He emphasized the bank’s ongoing interest in understanding how tokenization could transform asset management and transaction efficiency.
