US Bancorp executes first live transaction using dollar-backed USBDC stablecoin

US Bancorp USB.N said on Wednesday it completed a live pilot transaction using its proprietary U.S. dollar-backed stablecoin, USBDC as lenders race to develop blockchain-based payment networks with stablecoins gaining wider adoption.

Here are some more details:

• The pilot involved a cross-border transfer between U.S. bank entities in North America and Europe on the Stellar blockchain.
• The bank said it tested capabilities including minting, redemption, freezing and clawbacks through its digital asset platform.
• Stablecoins are used to move money around the world in the form of cryptocurrency, and are mostly used in crypto trading.
• The move follows broader industry efforts to embrace stablecoins, with Goldman Sachs GS.N, Bank of America BAC.N, Citigroup C.N and Wells Fargo WFC.N among the banks planning to create a company this year to issue a cryptocurrency pegged to the dollar in the first half of 2027.