Crypto · updated 2h ago · 2 min read
U.S. Bank Completes Cross-Border Payment Using USBDC Stablecoin on Stellar Network
U.S. Bank completed a live cross-border payment using USBDC on Stellar between North America and Europe. The test validated minting, redemption, freezing, and clawback with risk/compliance integration.
Whether the pilot signals a deliberate strategic pivot.
11 of 12 outlets skipped it: coinbase integrates Morpho lending for rewards on USDC in Brazil..
14outlets compared
Same story, two versions
tap a side to read it in full
Finance Magnates
“The pilot alone does not establish that the token meets the final regime.”Read the original ↗
Forkast emphasises strategic timing as a pivot. Finance Magnates cautions the pilot cannot prove regulatory compliance under the final regime.
USDC dominance, USBDC pilot
Tether’s USDT and Circle’s U.S. dollar stablecoin USDC account for 94% of the supply of major stablecoins, leaving stablecoins other than USDT and USDC at 6% of total supply.
“Tether's USDT and Circle's U.S. dollar stablecoin USDC account for 94% of the supply of major stablecoins.”
In the banking sector, U.S. Bank completed a live cross-border payment using its proprietary USBDC stablecoin on the Stellar network, moving funds between U.S. Bank entities in North America and Europe.
The pilot tested the full lifecycle of USBDC, from issuance and transfer to redemption, while also checking whether U.S. Bank could use Stellar’s freeze and clawback functions through its own Digital Asset Platform.
U.S. Bank described itself as the fifth-largest US bank by assets, and the pilot remained an intra-group test between U.S. Bank entities rather than a customer-facing rollout.
Bank controls and Circle expansion
U.S. Bank said it retained conventional banking controls for USBDC, including the ability to freeze assets and reverse transfers, and it framed the work as validating its internally developed Digital Asset Platform.
Gunjan Kedia, chairman and chief executive officer at U.S. Bank, said, "This live pilot demonstrates our ability to accelerate global cash management and money movement capabilities," while Jamie Walker, Head of Digital Assets and Money Movement at U.S. Bank, said, "This pilot is another step forward in our broader digital asset strategy."
On the Circle side, Circle agreed to buy Singapore’s Tazapay for $400 million in an all-stock deal to expand USDC cross-border payments, with the deal expected to close in 2027 subject to approvals including from the Monetary Authority of Singapore (MAS).
Circle said Tazapay handles more than $25 billion in annualized payment volume, works with over 60 banking and fintech partners, and offers local payout coverage in more than 100 markets.
What comes next for rails
The U.S. Bank pilot is positioned as a bridge between tokenized assets and traditional banking infrastructure, with the bank exploring additional uses including cross-border treasury operations, liquidity management, and moving collateral onchain.
“The pilot moved funds between U.S. Bank entities in North America and Europe, with USBDC issued and transferred on the public Stellar network.”
The broader stablecoin push also includes a plan by 21 major financial institutions to form a company to issue stablecoins, with the group planning to launch a US dollar-denominated stablecoin in the first half of 2027 before expanding to other G7 currencies.
Circle’s Tazapay acquisition is also framed as expanding USDC’s reach to move money worldwide around the clock, with Circle saying Tazapay customers would see no disruption to service, pricing, or support.
As the stablecoin market remains dominated by USDT and USDC at 94% of major stablecoin supply, the next phase for institutional rails hinges on whether banks and payments networks can translate pilots and acquisitions into wider adoption.