Stellar Becomes Testing Ground for U.S. Bank’s New Stablecoin Pilot

1. U.S. Bank begins testing custom stablecoin issuance on the Stellar network with PwC and the Stellar Development Foundation.
2. The trial focuses on regulated deposit tokens using Stellar’s built-in controls for asset freezing and transaction reversal.
3. The collaboration highlights a shift toward bank-grade blockchain infrastructure in the U.S. financial sector.

U.S. Bank has entered a new phase of digital finance by testing custom stablecoin issuance on the Stellar network. The update was shared through a joint announcement from U.S. Bank, PwC, and the Stellar Development Foundation, marking one of the most significant steps yet toward programmable money in a regulated banking environment.

The project revolves around deposit tokens, which are governed digital representations of bank deposits. These could bring a revolution in the manner in which banks exchange funds across the network, region, and financial systems. The development was made in the U.S. Bank Money 20/20 podcast, The Tokenized Future of Banking.

Mike Villano, the Senior Vice President and the head of the digital asset products division at U.S. Bank, added the importance of controls in the system, such as the ability to check a customer, prevent bad transactions from happening, and modify the distribution.

These, he said, can be supported by the Stellar protocol in its base-layer technology, making it fit properly in testing financial applications.

Stellar’s Infrastructure Underpins the Trial

The network has the ability to process transactions and distribute assets. The network has maintained an average uptime of 99.99% over the last decade and has dealt with transactions amounting to billions of dollars annually. The transactions on the network take only 3-5 seconds, and the cost involved is less than a cent.

José Fernández da Ponte, the President and Chief Growth Officer at the Stellar Development Foundation, added that mission-critical systems have to operate in a totally reliable manner.

The readiness of the underlying infrastructure, he said, has now proven that it has the capability to serve large institutions that cannot afford downtime and disruptions in settlement. The readiness was attested to by the involvement of U.S. Bank and the accounting and advisory services company, PwC.

The collaboration aligns with SDF’s overall mission of enhancing access to financial services through the modernization of systems in typical financial transactions. Through the ability to offer secured and affordable tokenized deposits, the parties hope to create a platform for the development of interoperable financial services.

Also Read: Wirex and Stellar Launch Real-Time Stablecoins Settlement With Visa Integration