Core Insights - U.S. Bank is testing the issuance of custom stablecoins on the Stellar network, collaborating with PwC and the Stellar Development Foundation to explore the feasibility of traditional banks issuing programmable money on a public blockchain [1] Group 1: U.S. Bank's Initiative - U.S. Bank's digital asset head emphasized the importance of Stellar's ability to freeze or unwind transactions, which aligns with regulatory requirements such as Know-Your-Customer (KYC) and transaction reversibility, essential for mainstream blockchain adoption by banks [2] Group 2: Stablecoin Market Potential - Stablecoins, which are cryptocurrencies pegged to fiat currencies like the U.S. dollar, are increasingly seen as tools for faster and cheaper cross-border payments, with projections indicating that annual cross-border stablecoin payments could reach $1 trillion by the end of the decade [3]

U.S. Bank has begun testing custom stablecoin issuance on the Stellar blockchain, marking one of the most progressive moves yet by a major U.S. financial institution toward programmable digital money. The development was announced during the bank’s Money 20/20 podcast episode, The Tokenized Future of Banking, featuring leaders from U.S. Bank, SDF, and PwC discussing how tokenization will reshape the future of financial services. The initiative shows a growing shift among major financial institutions towa ...