U.S. Bank tests transfers between its North American and European entities using its own stablecoin, also evaluates freezing and clawback

On September 9, local time, U.S. Bank announced that it had completed live test transfers between its entities in North America and Europe using USBDC, its own dollar-backed stablecoin. The transactions tested internal transfers between the bank's entities, rather than a customer-facing remittance service. The transfers used Stellar, a public blockchain, and the bank said it conducted the tests through its existing strategic collaboration with the Stellar Development Foundation. The bank described USBDC as one of the first bank-issued stablecoins deployed on a public blockchain. It also said the on-chain token transfers took place while connected to its existing treasury, risk management, compliance and operational systems. The tests evaluated USBDC's issuance, redemption, freezing and clawback functions, as well as the bank's internally developed Digital Asset Platform. The platform handles the issuance, management and movement of tokenized assets and connects existing banking infrastructure with blockchain networks. U.S. Bank presented the technology as offering the potential to transfer funds around the clock, regardless of time zones. It cited liquidity management, collateral transfers and cross-border corporate treasury operations as areas to explore. The announcement confirms that test transactions between the bank's own entities have been completed; it did not disclose when the service might become available to customers or a commercialization timeline.