Overview
- The Minneapolis-based lender confirmed testing issuance of a bank-grade token on the public Stellar network as an alternative payment rail.
- U.S. Bank is working with PwC and the Stellar Development Foundation to evaluate protocol features such as asset freezing and transaction unwinds.
- Stellar’s trust lines, validator identity disclosures, and roughly 1,000 transactions per second were cited as supporting KYC/AML requirements.
- The effort explores payments and treasury use cases alongside custody; in October the bank agreed to hold reserves for Anchorage Digital’s stablecoins.
- Executives say client demand for stablecoin payments is currently muted, and any rollout will depend on pilot results and regulatory clarity as peers like Citi, Goldman Sachs, and Bank of America run their own tests.