US Bank Tests Near-Instant Global Payments on Stellar
US Bank conducted a live cross-border payment between its North American and European entities using USBDC, a dollar-backed stablecoin built on the Stellar blockchain. The test demonstrated near-instant settlement with minimal transaction costs of less than one cent per transfer. This marks a significant step in exploring public blockchains for institutional payments. The experiment involved minting, transferring, redeeming, freezing, and clawback capabilities—features crucial for regulatory compliance and risk management. While the pilot was internal to US Bank and not yet available commercially, it highlights Stellar's potential as an alternative infrastructure for cross-border transactions compared to XRP-based systems or SWIFT. The broader implications suggest a growing competition among blockchain platforms in the global payments space. As SWIFT also develops its own blockchain solutions, traditional financial institutions are increasingly testing decentralized alternatives that offer speed and cost efficiency.
Topics: cross-border payments Stellar SWIFT USBDC stablecoin XRP competition