US Bank Steps Into Stablecoin Trials With New Stellar Pilot

US Bancorp has just started testing a stablecoin system on the Stellar blockchain. The effort is a joint project with consulting firm PricewaterhouseCoopers (PwC) and the Stellar Development Foundation. 

Stellar shared the news on Tuesday and said the move shows large institutions are now fully entering the space.

The company behind US Bank, a public firm with more than $664 billion in assets under management and yearly revenue above $27.5 billion, views the trial as a chance to test how blockchain can function inside a controlled bank setting.

PwC Says the Time for Talk Is Over

Kurt Fields, director and blockchain lead at PwC, described the pilot during a Tuesday episode of the US Banks podcast Money 20/20. He said the industry has spent years discussing blockchain’s potential, and he believes the current moment is about proving how the technology performs under strict oversight.

Fields added that the team hopes to show how onchain systems can offer clear advantages for both banks and the people who use their services. He noted that programmable digital money may allow smoother processes and quicker settlement, provided the system is built to meet tough banking rules.

The Stellar network, launched in 2014, is an open-source blockchain used for cross-border transfers and asset tokenization. It aims for quick payments and controls that are good for institutions that operate under tight regulations.

Why Stellar?

Mike Villano, head of digital asset products at US Bank, said his team chose Stellar because of its ability to freeze assets and reverse transactions if needed. 

He explained that many systems require such security features for their custom business logic, while Stellar offers these controls at the core network level. He said this capability was a major deciding factor for a bank aiming to protect customers.

Villano also shared that US Bank is researching tokenized assets. He said the team is examining how fast, around-the-clock transfers could be applied to a wide range of asset types beyond stablecoins. 

Early findings have encouraged further study, and the bank plans to continue exploring how these models might support future services.

The pilot is expected to help US Bank understand how blockchain-based settlement may fit into its wider digital strategy as the industry tests new payment rails built for higher speed and stricter oversight.