US Bank Is Testing a Stablecoin on Stellar Network

Core Insights - U.S. Bank is testing a stablecoin on the Stellar blockchain in collaboration with PwC and the Stellar Development Foundation [1] - The initiative reflects a growing interest among banks in stablecoins, particularly after the signing of the GENIUS Act, which regulates the issuance and trading of these tokens [2] - U.S. Bank's engagement aims to demonstrate the potential of blockchain technology in a secure, bank-grade environment [3] Company Developments - U.S. Bank is part of a trend where multiple banks, including Citi, Goldman Sachs, Barclays, and Bank of America, are exploring joint stablecoin ventures [3] - The bank's partnership with Stellar is driven by the network's architecture, which allows for transaction freezing and unwinding at the blockchain level [4][5] - U.S. Bank has also announced plans to custody reserves for Anchorage Digital's stablecoins, indicating a broader strategy in the stablecoin space [6] Market Context - Stellar's blockchain has been operational since 2014 and currently ranks 19th in stablecoin market cap, with approximately $212 million in stablecoins, predominantly Circle's USDC [5] - U.S. Bancorp shares increased by 2.8% to $49.08 per share following the announcement of the stablecoin initiative [6]