U.S. Bank Tests Stablecoin with Reversible Transactions Using Stellar Blockchain
On September 9, U.S. Bank conducted a live pilot where it transferred real dollars using its own stablecoin (USBDC) on the public blockchain of Stellar. The bank emphasized that while transactions are visible to all users, only U.S. Bank can reverse or freeze them—a feature known as the 'kill switch.' This capability contradicts traditional crypto principles by allowing issuers to reclaim funds from user wallets. The pilot demonstrated functionalities such as token creation, cash-out, freezing, and reclamation, indicating that USBDC is not a direct competitor to existing stablecoins like USDC. Instead, it functions more like an enhanced wire transfer with undo capabilities. U.S. Bank's CEO highlighted the initiative’s potential for global money movement. This move positions U.S. Bank against broader Wall Street efforts toward shared dollar tokens by 2027—initiatives that include major banks such as Goldman Sachs and Deutsche Bank, but not U.S. Bank itself.
Topics: blockchain digital payments stablecoin Stellar (XLM) U.S. Bank